Famed investor Cathie Wood, chief government of Ark Investment Management, continues to jettison shares of what’s nonetheless the No. 3 holding in Ark’s flagship fund.
Ark funds offered 228,235 shares of Exact Sciences (EXAS) – Get Free Report Jan. 27, valued at $15.4 million as of that day’s shut. It’s a medical diagnostics firm well-known for its at-home colon most cancers check.
Wood apparently is attempting to benefit from the inventory’s current rebound. Exact Sciences’ inventory has misplaced 6% over the previous yr, nevertheless it has jumped 118% since Oct. 14, buoyed by sturdy earnings and the general market’s rally.
Wood additionally offered 959,515 shares of Exact Sciences final week, lately valued at $63.5 million. Exact Sciences started final week because the No. 1 holding in flagship Ark Innovation ETF (ARKK) – Get Free Report. Tesla is presently the highest canine, adopted by Zoom Video Communications.
PATRICK T. FALLON/AFP by way of Getty Images
Wood’s Returns Tumble
Meanwhile, Wood’s efficiency hasn’t precisely overwhelmed the funding world over the previous yr, as her younger know-how shares have slumped. Ark Innovation has slid 48% throughout that interval and 75% from its February 2021 peak.
To make certain, the fund has rebounded 26% to this point this yr, becoming a member of the know-how inventory surge.
Wood has defended her technique by noting that she has a five-year funding horizon. But the five-year annualized return of Ark Innovation was solely 0.47% via Jan. 27, in contrast with 9.13% for the S&P 500.
The fund’s efficiency additionally doesn’t come near Wood’s objective for annualized returns of 15% over five-year intervals.
Ark Innovation’s subpar returns apparently aren’t deterring traders. The $7.7 billion fund registered a internet funding influx of $32 million previously 5 days and $1.07 billion during the last yr, in response to ETF analysis agency VettaFi.
What Draws Investors to Wood
You would possibly surprise why so many traders have caught with Wood. The incontrovertible fact that she had one spectacular yr actually helps. Ark Innovation skyrocketed 153% in 2020.
Also, Wood has turn out to be one thing of a rock star within the funding world, showing continuously within the media. She explains monetary ideas in ways in which novice traders can perceive.
Wood does have her detractors. Morningstar analyst Robby Greengold issued a scathing critique of Ark Innovation final yr.
“ARKK shows few signs of improving its risk management or ability to successfully navigate the challenging territory it explores,” he wrote.
Wood, in fact, begged to vary. “I do know there are companies like that one [Morningstar] that do not understand what we’re doing,” she mentioned in an interview with Magnifi Media by Tifin.
Source: www.thestreet.com
