ZM - Cathie Wood's Ark Invest Lost More Than $14B In Wealth Over Past Decade: Report | Benzinga
The much-hyped investment firm Ark Invest, led by Cathie Wood, has reportedly seen a massive erosion of wealth over the past ten years, amounting to a staggering $14.3 billion.
What Happened: According to a recent Morningstar analysis, the wealth destruction at Ark Invest, a company that gained widespread attention for its high-risk tech investments, has been attributed to the 2022 bear market. This market downturn led to a 67% plunge in the firm’s flagship fund, ARK Innovation ETF, reported Business Insider on Tuesday.
Despite the significant losses, Ark Invest still manages over $13 billion in assets across its ETFs, indicating that some investors continue to believe in Wood’s investment strategy.
“These funds managed to lose value for shareholders even during a generally bullish market,” Morningstar analyst Amy Arnott said.
Ark Invest’s top holdings, including Coinbase Global Inc (NASDAQ:COIN), Tesla Inc (NASDAQ:TSLA), Roku Inc (NASDAQ:ROKU), and Zoom Video Communications Inc (NASDAQ:ZM), have also experienced a challenging start to 2024.
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