Jack Pitcher of The Wall Street Journal reports that Cathy Wood’s ARK fund is sinking. No surprises here. Momentum investing swings both ways. Pitcher writes:
Cathie Wood’s investors are jumping ship.
They rushed into her funds and won big during the pandemic, when the star fund manager became a social-media sensation by making bold bets on disruptive technology stocks such as Tesla, Zoom Video Communications and Roku. They largely stuck with her when the funds’ fortunes reversed after the Federal Reserve raised interest rates. Now, after years of bruising losses, many of them have had enough.
Pitcher continues:
Investing forums on Reddit are littered with stories from individuals who invested in ARK during its heyday and are agonizing over whether to realize a huge loss or wait things out.
One entry from u/pigeon_playing_pong described moving his 401(k) and Roth IRA retirement accounts into ARK during the pandemic after seeing huge gains on his ARK funds in another account.
“I am now down about 50-60% in all my accounts,” he wrote. “I’m not sure how to move on three years later.”
Action Line: If you want to invest in ARK funds go ahead. Just not with my money. When you’re ready to talk, let’s talk.
