By David Randall

NEW YORK (Reuters] – The sharp rise in U.S. stocks over the week in May wasn’t enough to stop Cathie, a star stock picker, from losing her seventh consecutive month. This is the longest streak of losses in ARK Innovation Fund’s history.

In May, the ARK Innovation Fund, which was a multi-billion dollar fund that soared in response to the COVID-19 pandemic, lost 6.6%. This decline comes on the heels of an April plunge that was nearly 29%, which is the largest in the fund’s history.

This fund’s October 2021 gain of 9.6% was its best monthly performance. It is currently down almost 53% over the past year. On Wednesday, it gained 1% during morning trading.

The Federal Reserve’s hawkish interest rate hikes have had a devastating effect on ARK’s high-growth portfolio. They have increased capital costs and made it more difficult for investors to focus more on revenue growth than profits.

Zoom Video Communications (NASDAQ.) Inc is ARK’s largest holding. It is down almost 42%, and Tesla (NASDAQ.) Inc is down 28%. Over the same period, the benchmark has fallen 13.3%.

ARK didn’t respond to our requests for comment.

However, these losses have not deterred investors from remaining with the fund and they sent net positive inflows to the fund for six of its seven previous weeks. In the week ending May 25, investors took a net $69.7million from the fund, its first weekly loss in April 6.

According to Todd Rosenbluth (head of research at ETF Trends), the dedication shown by investors could indicate that they’re willing to take losses with ARK Innovation. This is because it allows them to diversify their portfolios.

Rosenbluth stated that many investors who own ARK ETFs mix them with broad-market index-based products. This allows for a portion of equity exposure to be allocated to the more risky but potentially lucrative thematic investment strategy. They are more willing to wait for the strategy’s return and can be patient.