Strategies

10 Ark Invest fund shares down on weakening bets on innovation

The Ark Invest flagship fund of renowned investor Kathy Wood has fallen 24% this year as investors have shunned loss-making, innovative technology companies, Business Insider writes.

This sharp reversal came amid a rotation out of fast-growing tech stocks in favor of more stable companies that can profit despite economic uncertainty.

Today, the once incredibly strong positive momentum in the tech sector has been replaced by a sustained negative momentum, causing the entire sector to fall more than 80% from record highs. The fall has been exacerbated by the U.S. Federal Reserve’s recent decision to accelerate reductions in monthly bond purchases, as well as the forecast of multiple interest rate hikes in 2022.

Despite this, Wood continues to pursue his bullish investment strategy of buying innovative companies with little or no returns. In her blog on Friday, Wood said the stocks ARK Invest owns are now in the “deep value zone” and predicted a 40% increase in their annual returns over the next 5 years.

Here are the 10 biggest declines in Ark Invest’s flagship Disruptive Innovation ETF stocks as of Dec. 20, according to Koyfin:

  1. Berkeley Lights (ticker Berkeley Lights Inc (NASDAQ:BLI)) is down 83% for the year and has a market cap of $1.3 billion.
  2. Skillz Inc. (ticker Skillz Platform Inc (NYSE:SKLZ)) is down 83%, with a market capitalization of $3.2 billion.
  3. Robinhood Markets (NASDAQ ticker:HOOD) fell 79% on a market capitalization of $15.2 billion.
  4. Invitae (ticker InVitae Corp (NYSE:NVTA)) is down 72% at a market capitalization of $3.8 billion.
  5. Materialise (ticker Materialise NV (NASDAQ:MTLS)) fell 72% on a market capitalization of $1.4 billion.
  6. Compugen (NASDAQ ticker:CGEN) is down 71% at a market capitalization of $380 million.
  7. Editas Medicine (ticker Editas Medicine Inc (NASDAQ:EDIT)) is down 70% at a market capitalization of $2.0 billion.
  8. Teladoc Health (ticker Teladoc Inc (NYSE:TDOC)) is down 69% at a market capitalization of $15.3 billion.
  9. Signify Health (ticker symbol Signify Health Inc (NYSE:SGFY)) is down 66% at a market capitalization of $3.2 billion.
  10. 2U, Inc (ticker 2U Inc (NASDAQ:TWOU)) fell 66% on a market capitalization of $1.6 billion.

Strategies