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Cathie Wood’s ARK Innovation fund falls near 15-month low ahead of Fed -Breaking

by Mike Robinson

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© Reuters. Cathie Wood is the founder and CEO at ARK Investment Management LLC. She spoke during the Skybridge Capital New York 2021 conference, New York City (U.S.A), September 13-2021. REUTERS/Brendan McDermid/File Photo

By David Randall

NEW YORK, (Reuters) – The ARK Innovation ETF of star stock picker Cathie White fell to a near 15-month low on Wednesday. This left the U.S.’s best-performing equity fund down almost 30% for 2020.

On Wednesday, nine out of 10 positions with $16 billion in assets fell. The largest drops were caused by streaming services. Roku (NASDAQ) Inc, Coinbase cryptocurrency company (NASDAQ) Global Inc, and ecommerce company Shopify(NYSE:) Inc.

These losses occurred ahead of the Federal Reserve’s policy meeting in which they are expected to adopt a more hawkish tone. This will be a setback for both high-value assets as well as companies with low revenues. The broad index fell 0.3% on Wednesday.

ARK’s fall comes just one day after Wood stated that in a webinar, deflation would be more of a concern than inflation for the future.

Wood spoke Tuesday, saying that “our confidence has grown” in the strategy despite losses to stock for the past year.

The ARK Innovation fund has fallen 43.2% since its Feb. 16 high of $159.70. However, concerns over rising inflation had already started to affect the type of high-growth, home-based stocks that rallied after the Pandemic of 2020.

Ark Invest declined to comment on this story.

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