ARK's flagship fund is still rising; The decline in stock prices highlights volatility.
Cathie Wood, Wall Street's star manager and head of Ark Investments, has been hit by a double whammy because of her main shareholding$Block(SQ)$Company and Coinbase Company have been plagued with negative news recently.
On Thursday (23rd), Hindenburg Research, an American short seller, pointed its finger at Block, a financial services company. After the report was issued, its share price immediately plummeted.
On Wednesday (22nd), the US Securities and Exchange Commission (SEC) issued a Wells notice to Coinbase, the largest cryptocurrency exchange in the United States, saying that Coinbase was suspected of violating the investor protection law, which indicated that it would take compulsory action against the company.
According to the relevant position data of ARK Innovation ETF (ARKK) under "Wood Sister", Coinbase's position accounts for 7.5%, while Block accounts for 6.2%. It can be said that both companies are her main holdings.
ARKK's shares fell 2% Thursday. The fund has assets under management of $7.3 billion. The fund is up 29% this year, easily beatingSPDR S & amp; P 500ETF Trust (SPY)An increase of 4.7%. Tesla, its largest holding, has more than doubled this year, boosting ARKK.
"Sister Wood" initially rose to prominence as a top fund manager in the months following the pandemic in 2021, when ARKK hit its highest price of $150 per share. On Thursday, it traded at about $38. ARK is also increasing its holdings of Block, the company's other Big Five holding company, this month, at 6.24 pc of its assets. This month, the company bought 459,000 shares.
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