Bloomberg reported on Thursday (1st) that fans of Cathie Wood (Cathie Wood) have turned away last month, and the flagship fund of Cathie Wood, the flagship fund of Cathie WoodARKK-US) saw an outflow of US$803 million in August, the largest monthly outflow since September last year, making this fund even worse in the downturn.
The increase in capital outflows highlights a marked shift in investor sentiment. Even though ARKK has continued to fall for most of the year, there has been inflows.But for now, investor loyalty has reached its limit, with ARKK down 60% this year, andS&P 500 IndexDown 18%, the outlook for a near-term recovery is less optimistic.
Nate Geraci, president of consulting firm ETF Store, said that performance is king in the end, and no matter how strong a fund manager’s beliefs or his ideals are, if performance is poor, money will eventually flow out.
The goddess and her team manage ARKK while holding on to disruptive technology-themed stocks, which Geraci said helped the fund’s assets stay sticky earlier this year because investors knew what to expect from ARKK.
But the goddess’ choice is also a factor in the fund’s continued lacklustre performance, as fiery inflation and central bank monetary tightening weigh on her favored growth stocks.
ARKK last month bought the bottom of video software provider Zoom (ZM-US) stock as its shares plummeted to pre-pandemic levels, and another biotech company, Ginkgo Bioworks (DNA-US) is also favored by female stock gods and continues to buy. The stock price has fallen 69% this year.
Geraci said some investors may have thought last month was a good time to get out of ARKK as the ETF rebounded from its June lows into mid-August. Another sign that the market is bearish on ARKK, the opposite is short on ARKK’s ETF (SARK-US) monthly capital inflow hit a new high since January this year.
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