Catherine Wood is the chief executive officer of ARK Investment Management.
Some analysts think that the stocks behind the strategies of ARK Innovation will fall even further before the fund bottoms out.
The innovation-focused exchanged-traded fund was down more than 50% from its all-time high on Thursday. The fund saw a drop in March of 2020 during the low of the market plunge.
ARK Innovation was not moving on the day.
Ark Innovation peaked at the trough.
Josh Brown, co-founder and CEO of Ritholtz Wealth Management, said on CNBC that this is worse than March of 2020 for that segment of the market. That is amazing to me.
The selling this week was due to a spike in interest rates. The market that relies on low rates to borrow for innovation is usually punished by higher rates. When rates are on the rise, their future earnings look less attractive.
The 10-year Treasury yield rose as high as 1.75% on Thursday, as the Federal Reserve signaled a faster-than- expected policy tightening this year.
Stephen Weiss, chief investment officer and managing partner of Short Hills Capital Partners, said on CNBC's "Halftime Report" that he doesn't believe the Cathie Wood stocks are low enough. There will be continued pressure.
Inflation is here. The Fed is going to be aggressive. He said the Fed wants you out of risk assets.
36 of the 43 holdings in ARK Innovation are less than a week away from their highs. ARK Innovation has some of its top holdings.
Even though it is not a hedge fund and it can't be shot against, the performance of Cathie Woods is so bad that it is a pall over every holding. It's hard to find opportunities. Jim Cramer said on Thursday that it was a tough streak.
According to FactSet, more than $280 million in fund flows have left Wood's flagship fund since Monday due to this week's under performance.
ARK Innovation had a rough year in which it fell 24%.
Ark has not changed his forecast despite the depreciation in Wood's stocks. Wood said she is getting her highest-conviction stocks at lower prices. She has said that this will result in a quadrupling over the next five years.
Wood has been buying the dip in her favorite stocks. She bought shares of DraftKings, Block and Roblox.
