Investor Cathie Wood’s investment management firm ARK Invest has filed for a new fund that will target illiquid securities of disruptive tech companies, media reports said citing a regulatory filing.
The company’s flagship exchange-traded fund (ETF), ARK Innovation (ARKK), has filed for an interval fund that will target “illiquid securities and securities in which no secondary market is readily available, including those of private companies,” the filing said.
The fund will invest in early- to late-stage private companies working on technologically enabled new products or services that “potentially changes the way the world works.”
It will have a minimum initial investment threshold of $1,000 and will invest in firms involved in areas like artificial intelligence and automation. The fund will offer quarterly redemptions in the range of 5% to 25% of its shares.
Eric Balchunas, a senior ETF analyst with Bloomberg Intelligence, said, “This makes a lot of sense as the structure will give Cathie and Co. the freedom to really explore the less liquid areas of the market without having to worry about capacity issues like they would in an ETF.”
“It’s also smart because it is serving up something Vanguard doesn’t and so can be used to complement the increasingly passive core of a portfolio,” Balchunas added.
About ARK Invest
Founded by Wood in 2014, Florida-based ARK Investment Management LLC manages several ETFs. The company had $50 billion in assets under management in February 2021, which fell to $23.9 billion by January 2022.
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