Star Fund trader Kathy Wood’s flagship fund “Arc Innovation ETF” (ARKk) fell over 10% on the 11th, impacted byInvestmentThe stock price of cryptocurrency exchange Coinbase in the portfolio fell by more than 30%, causing the ETF to close below the lowest point during the March 2020 stock market crash.
Coinbase, which accounts for 4.32% of ARKK’s asset portfolio, fell 31.3% intraday on the 11th, setting a record low, with a closing drop of 26.4%. Coinbase’s earnings last quarter fell short of market expectations, with CEO Armstrong insisting the company didn’tbankruptcyrisk.
The decline in Coinbase added to the decline of ARKK this year. Ark Investment Management (ARK) is yet to comment on this.
ARKK has outperformed all other active funds tracking US stocks in 2020, helped by a boom in portfolio videoconferencing software Zoom and telehealth services company Teladoc during periods of stay-at-home.
ARKK’s strong performance made Wood a household name, placing him on the cover of several magazines, and prompting retail investors to participate in the fund, generating billions of dollars in inflows. But now some people think that ARKK’s dazzling display during the pandemic is just a flash in the pan.
ARKK is down 61.92% so far this year and is down almost 76% from its peak in February last year.
Wood, who participated in a webinar on Tuesday, attributed much of ARKK’s loss to the Federal Reserve’s aggressive pace of raising interest rates, especially as he believes the global economy is in recession.
ARK Investment Bankruptcy
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