With Funds Down, Cathie Wood ‘Soul Searching’ but Staying Course

  • Wood says higher interest-rate fears have weighed on Ark funds
  • Ark’s flagship innovation ETF has fallen over 20% in 2021
WATCH: Cathie Wood, founder of Ark Investment Management says her firm went through “soul-searching.”Source: Bloomberg
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Ark Investment Management is “going through soul-searching” but sticking to its strategy as its growth-focused funds fall out of favor amid expectations of tighter Federal Reserve policy, said founder Cathie Wood.

The $17.8 billion ARK Innovation ETF has tumbled more than 20% this year, with several of its top holdings like electric-vehicle giant Tesla Inc. and video-streaming platform Roku Inc. down from their peaks. During the same period, the S&P 500 Index climbed about 24%.