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Cathie Wood fans fold as ETF assets drop to $ 40 billion

(Bloomberg) – With the recent tech punch, the liquidity Cathie Wood manages in her ETF lineup has just fallen below $ 40 billion – but her loyal fan base is largely hanging on to the race . $ 39.7 billion in its U.S. exchange-traded funds, up from more than $ 60 billion at the peak in February, according to data compiled by Bloomberg. The company is now the 11th-largest issuer in the United States, down from seventh earlier this year. Much of the loss is due to the sharp decline in the value of its holdings, as speculative tech names with valuations soaring and massive races descend towards the earth. Its flagship ARK Innovation ETF (ARKK) has fallen around 35% from its peak. Still, the massive exodus that some had anticipated during a period of underperformance has yet to materialize, with traders only withdrawing $ 76 million from the fund in April and $ 301 million so far in May. versus $ 7.1 billion added in the first three months of. “It looks like investors still believe in Cathie Wood’s philosophy and think the pullback may be short-term,” said Mohit Bajaj, ETF director at WallachBeth Capital. in 2021. The eight-product line – six actively managed funds and two tracking indexes – has lost roughly just $ 800 million net since late February. ready to stick to Ark. About $ 1.1 billion of the $ 28 billion added to the fund family since November can be traced to retail investors, according to a report from Vanda Research. Wrote analysts Ben Onatibia and Giacomo Pierantoni. temporary horizon. She even added to her stakes in Twitter Inc., Roku Inc., Skillz Inc. and Peloton Interactive Inc. last week. Some are now wondering how long the drop in funds will last, especially as the buyers of troughs step in. trading started before falling 3.3% at 1 p.m. in New York. Open interest in bullish calls on ARKK is at an all time high, and even similarly high activity in bearish sell contracts has historically preceded a rebound, Chris Murphy at Susquehanna International Group wrote in a note. “It got oversold on a technical basis,” said Matt Maley, chief market strategist at Miller Tabak & Co. “Weak hands have already sold out, so we’re now in the ‘wait and see’ mode. Ark funds may rebound strongly, the clear flag will be raised. ”(Updates with latest trading activity, more details in 10th paragraph) For more articles like this please visit us on bloomberg .com source of economic information. © 2021 Bloomberg LP

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