Cathie Wood's Ark Invest Lost More Than $14B In Wealth Over Past Decade: Report

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 COIN, Tesla Inc TSLA, Roku Inc ROKU, and Zoom Video Communications Inc ZM, have also experienced a challenging start to 2024.

See Also: Not Shy Of Buying The Dip, Cathie Wood’s Ark Mops Up Over $11M Worth Of Shares In Tesla — Sells Nvidia Stock

Notably, Ark Invest’s wealth erosion occurred during a period of favorable market conditions, raising questions about the firm’s future prospects.

Why It Matters: Despite the recent setbacks, Ark Invest has continued to make bold moves in the market. In January, the firm purchased $3.3 million worth of Tesla shares, reinforcing its confidence in the electric vehicle giant. This move came at a time when Tesla was facing a challenging market scenario.

Ark Invest’s faith in Tesla was further evidenced in February when the firm purchased over $11 million worth of Tesla shares, despite market fluctuations. These investments reflect Wood’s unwavering belief in Tesla’s growth trajectory.

Additionally, in January, Ark Invest purchased $3.3 million worth of shares in Robinhood Markets Inc HOOD, signaling another bold move to support innovative companies amid strategic shifts and financial growth for Robinhood.

Read Next: Jim Cramer Tells Investors To ‘Find Some Room For Stocks’ Before Fed Rate Cuts: ‘You’re Gonna Be Kicking Yourself If You Insist In Parking All Your Cash’

Image Via Flickr