Cathie Wood of Ark Investment Management, whose flagship Ark Innovation ETF (ARKK) - Reportis dropped 73 percent from its February 2021 peak, on June 9, implying she would soon establish a crossover fund. It would include both public and private investments.
"We''re [the] closest to a venture capital fund in public equity markets," Wood said in an interview with Bloomberg. She said she couldn''t say more for regulatory reasons.
Ark Venture was purchased by the Securities and Exchange Commission in February, as part of the filing, which indicated that the vehicle would focus on illiquid securities and would be restricted from investors in periods of volatility.
When Wood leaked to fame, her young, disruptive technology stocks soared in 2020. Ark Innovation sped into the stratosphere, with a return of 153 percent in the year.
Ark Innovation Is Reintroduced.
As speculative technology stocks have slowed, the fund has fallen since then. This year, Ark Innovation has dropped by 23% last year, and has given up 55% so far in 2022.
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The largest holdings are videoconferencing service Zoom Video Communications (ZM) - Get Zoom Video Communications Inc. Report, streaming-video platform Roku (ROKU) - Get Roku Inc. Report, electric-vehicle titan Tesla (TSLA) - Get Cerr Therapeutics Inc. Reportand biotechnology company Crispr Therapeutics (CRSP) - Get CRISPR Therapeutics AG Report.
Wood has established a loyal following among retail investors thanks to her down-to-earth attitude and frequent social media appearances. They have taken to Mamma Cathie.
According to VettaFi, one ETF research company, many of Wood''s investors are concerned about Ark Innovations'' underperformance.
Underperforms the S&P 500
Ark Innovation and other Wood funds have dropped in recent months, and she has defended herself by stating that she has a five-year investment potential.
Ark Innovation''s five-year record would be beneficial to investors until May 9. The funds five-year return fell above the threshold of the S&P 500 until then. However, Ark Innovation''s five-year annualized return fell by 0.99% to June 8, far behind the S&P 500''s 13.09% return.
Most [fund managers] would probably lose their jobs if they had the same results, but Cathie and Ark have a strong follow, according to Bloomberg Intelligence ETF analyst Athanasios Psarofagis.
Private markets are incredibly volatile, and even experienced investors may suffer harsh losses. Investors soon may get the chance to bet on Cathie Wood to succeed in this arena.