Cathie Wood’s ETF assets are less than $ 40 billion, but loyal fans | Financial Market News

According to data collected by Blo Investment, the founder of Ark Investment Management LLC now controls $ 39.7 billion in U.S.-exchanged funds, more than $ 60 billion at the February peak.

With the latest blow to technology, Cathie Wood’s money in the ETF’s lineup has dropped to less than $ 40 billion, but the base of her fans is mostly loyal.

According to data collected by Blo Investment, the founder of Ark Investment Management LLC controls $ 39.7 billion in exchange-traded funds in the U.S., compared to more than $ 60 billion at the February peak. The company is currently the 11th largest issuer in the U.S., compared to seventh this year.

A large part of the loss is due to a significant drop in its holdings, as speculative names of technologies return valuable valuations and massive trajectory to the ground. The flagship ARK Innovation ETF (ARKK) has dropped by about 35% from its height. Still, the projected mass exodus by some has not yet materialized, with traders withdrawing $ 76 million from the fund in April and $ 301 million in May, compared to the $ 7.1 billion added in the first three months. year.

“Investors seem to still believe in Cathie Wood’s philosophy and believe it is short-term to back down,” said Mohit Bajaj, director of ETFs at WallachBeth Capital.

In fact, the company’s ETFs have made a net profit of $ 15.3 trillion so far in 2021. Eight product lines – six actively managed funds and two monitoring indices – have lost just over $ 800 million net since the end of February.

Although retail activity has declined in the broader market, it seems that day traders are ready to stick with Ark. About $ 1.1 billion of the $ 28 billion added to the family of funds since November could be attributed to retail investors, according to a report by Vanda Research. .

“In times when Ark ETFs have had large redemptions, retail investors have bought in, increasing the retail distribution of institutions,” write analysts Ben Onatibia and Giacomo Pierantoni.

Throughout the downturn, Wood has repeatedly said that his strategies have not changed and that he is investing with a five-year time limit. Last week Twitter Inc., Roku Inc., Skillz Inc. and Peloton Interactive Inc. added company stakes.

Some are now questioning how long the decline in the fund will last, especially as it is flooded by buyers. ARKK rose in early trading in New York from 1pm before falling 3.3%.

ARKK’s open interest in options for sharp calls is at an all-time high, and also in declining contracts this activity has been very high before the rebound, Chris Murphy wrote in a note to Susquehanna International Group.

“It’s been sold because of the technical bases,” said Matt Maley, Miller Tabak & Co.’s chief market strategist. “Weak hands have already been sold, so now we’re in a ‘wait and see’ mode. When the Ark funds can bounce hard, the clear flag will be raised.”