Cathie Wood’s Ark Innovation fund is wrapping up its worst-performing month ever, losing 29% in April. Now, the fund is roughly 70% below its record-high in 2021 when pandemic stars like Zoom and Teladoc were surging. On Thursday, Teladoc sank 48%, and Wood’s funds lost about $400 million from that stock alone. Loading Something is loading.
Cathie Wood’s ARK Innovation fund is about to notch its worst-performing month since its inception, with a 29% decline in April.
Amid the easing of the COVID-19 pandemic and Fed hawkishness that has boosted bond yields, Wood’s reliance on high-growth stocks has dragged down most of her funds.
Her flagship fund has dropped roughly 70% from its record-high in 2021, when pandemic darlings like Zoom Video and Teladoc were surging. On Thursday, Teladoc sank 48% after reporting a massive first-quarter loss and weak 2022 guidance— causing Wood’s funds to lose more than $400 million on that stock alone.
Wood rose to prominence in 2020 as her stock picks massively outperformed the broader market earlier in the pandemic. But gains have evaporated, and her longer-term outperformance is slimming.
Ark Innovation ETF has now returned about 109% over the last five years, while the S&P 500 has returned about 97%.
Meanwhile, Wood has warned that the recent slide in stocks and bonds could be a warning sign that the Fed could trigger a financial crisis.