Trapped in a broad technology sale, the stock traded by the Wood’s Ark Innovation Stock Exchange has fallen for nine of the last 10 sessions, a setback that accelerated Monday on the biggest slide in about seven weeks.
Cathie Wood’s miserable month continued on Tuesday as its publicly traded flagship fund widened the decline and its assets fell below $ 20 billion, to its lowest since January.
The Ark Innovation ETF (ARKK ticker) slipped 1% at 9:47 a.m. in New York. Trapped in a wide sale of technology, the product has fallen for nine of the last 10 sessions, a setback that accelerated Monday to the biggest seven-week slide.
Tesla Inc., the fund’s largest stake, fell 3.5% on Tuesday. Teladoc Inc., also heavily weighted in the ETF, fell less than 1%.
The stock rotation of expensive-looking tech names is proving difficult for Wood and his company, Ark Investment Management, with investors withdrawing more than $ 500 million from the main fund through May.
Tesla and Bitcoin’s big bets attracted billions to Ark’s products, but more recently investors have come close to the kind of expensive stocks the money manager favors in companies with often unproven technologies.
Other speculative corners of the market have also suffered, with an ETF tracking monitoring companies for special uses, which will fall 20% this year.
With the ARKK down 34% compared to the February high, the options activity presents an increasingly bleak picture. The number of outstanding bear sales contracts has jumped to a record. According to data from IHS Markit Ltd., short-term interest remains almost at an all-time high.