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Cathie Wood’s Ark ETF Sees 91% of Holdings Tumble in Tech Rout

Published 05/11/2021, 03:28 PM
© Reuters
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(Bloomberg) -- Cathie Wood’s ARK Innovation ETF (NYSE:ARKK) plunged to a six-month low, with all but five of its 58 holdings retreating in a broad tech selloff.

The ARKK exchange-traded fund that makes concentrated bets on tech companies aiming to disrupt industries fell 5.2% Monday, double the loss in the Nasdaq 100 Index. It’s now down more than 30% from its February peak.

Hardest hit in the portfolio listed in the fund’s May 7 holdings disclosure were two biotech stocks. Twist Bioscience (NASDAQ:TWST) was the fund’s biggest laggard, plunging more than 17% on Monday, its worst one-day performance since Feb. 5. NanoString Technologies (NASDAQ:NSTG) sank 12%. Tesla (NASDAQ:TSLA), ARKK’s biggest holding, dropped 6.4%.

Wood has added to her bets in recent downdrafts, buying Twitter Inc (NYSE:TWTR) in three out of five days last week as it fell 5.2% in its worst week since March. She said in a television interview that the tech selloff has only set her fund up for a strong rebound. ARKK surged almost 150% in 2020 and is down 16% this year.

On the bright side, Coinbase Global (NASDAQ:COIN), which accounts for about 2.8% of the ETF’s holdings, gained 11.3% in its best day since its April 14 direct listing.

Ark Investment Management sold 30.4% of its Apple (NASDAQ:AAPL) holdings on Monday, according to Bloomberg’s calculations of data from the firm’s daily trading update. The asset manager also added 33,300 Coinbase shares, according to its latest disclosure.

(Updates with Ark’s Apple and Coinbase holdings in last paragraph)

©2021 Bloomberg L.P.

 

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