Cathie Wood's Ark Empire Bleeds As Investor Outflows Spike: 'The Loyal Shareholders Have Become Frustrated'
Portfolio Pulse from Piero Cingari
Ark Invest, led by Cathie Wood, has seen a significant downturn, with assets under management dropping from $59 billion to $11.1 billion due to high interest rates and investor outflows. The ARK Innovation ETF (ARKK) experienced over $1.3 billion in outflows in 2024. Despite positive returns from Coinbase (COIN) and Robinhood (HOOD), other top holdings underperformed. AXS Investments launched ETFs (SARK, TARK) that short ARKK, seeing substantial returns and increased trading activity following the Silicon Valley Bank fallout.
April 23, 2024 | 5:20 pm
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POSITIVE IMPACT
Coinbase Global Inc. stands out with a positive return of 35.60%, potentially indicating resilience and a positive short-term outlook.
As one of the few Ark holdings with positive returns in 2024, COIN's performance could attract investor interest, potentially boosting its short-term price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Robinhood Markets Inc. also posted positive returns, suggesting potential short-term growth despite the overall negative trend in Ark's portfolio.
HOOD's positive performance, in contrast to most of Ark's portfolio, could signal a favorable short-term outlook for its stock price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The AXS Short Innovation Daily ETF, which shorts ARKK, has seen a 40% increase since inception, indicating strong performance and potential for continued short-term gains.
SARK's success, particularly in the context of ARKK's downturn, suggests that investor interest in betting against ARKK remains strong, potentially driving further gains.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
The AXS 2X Innovation ETF, offering 2x leverage on shorts against ARKK, has capitalized on ARKK's underperformance, suggesting a bullish short-term outlook for TARK.
Given TARK's leverage strategy and ARKK's continued underperformance, TARK's positive momentum is likely to persist in the short term, attracting more investors.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90
NEGATIVE IMPACT
ARK Innovation ETF experienced significant outflows, indicating investor dissatisfaction and potential short-term negative impact on its price.
The substantial outflows from ARKK, especially compared to the previous year, suggest a loss of investor confidence, likely leading to a negative short-term price impact.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100