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Cathie Wood’s ARK Fund Proves to be a Cash Sink

2022 so far hasn’t proven anyone’s idea of a great year for stocks. Some parts have done better than others, but overall, the current situation doesn’t look good. Cathie Wood’s ARK Invest (ARKK) fund is one of those parts that hasn’t done especially well, though perhaps, not as bad as some others.

The Ark fund did wonders in 2020 and seemed to win big, thanks in large part to the ARK Innovation ETF. The performance that the fund saw that year was sufficient to pull in over $20 billion in inflows in 2021. Yet a lot of those investors were left with little more than regret. So far, the ARK family of funds lost around $1.3 billion in total over the last 10 years.

Much of that loss can be traced back to two major failings: losses at the ARK Genomic Revolution fund (ARKG) and the ARK Fintech Innovation fund (ARKF). The ARK Fintech Innovation fund lost close to two-thirds of its value against this time last year.

While certainly, ARK had a terrible year, it was hardly alone in the field. ARK turned out to be only the fifth largest destroyer of wealth, and the losses seen at other funds were far worse than ARK’s.

For instance, Barclays (NYSE:BCS) posted destruction over double that seen at ARK, coming in at $2.845.8 billion. Kraneshares edged Barclays out for third at $3.026.38 billion destroyed, and Credit Suisse (NYSE:CS) came in at number one, with just under $7.4 billion in wealth destroyed.


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