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Cathie Wood’s flagship ARK fund slips more than 60% from 2021 peak

The value of Cathie Wood’s flagship ARK Innovation exchange-traded fund (ARKK) slumped more than 60% since its February 2021 peak, wiping out the entire post-pandemic rally. Even worse, the value of the shares the fund holds is down 70% on average from their 5-year highs, according to a report from Bespoke Investment Group. Cathie Wood is an acclaimed stock picker and the founder of ARK Invest, a US$60bn investment management fund that invests in innovations including self-driving cars and genomics. Signify Health was the only stock in the fund that did well on the year, while overall holdings in the fund fell by an average 40.8% in 2022.  According to the Bespoke report, Signify Health is still down over 60% from its February 2021 high. Tesla Inc (NASDAQ:TSLA), the fund’s largest holding, fell 18.4% since its November 4, 2021 peak, followed by Zoom Video Communications, the fund’s second largest holding, dropping nearly 82%. The report indicates that Tesla, the mega-cap EV company, is only down 5% year to date, “a substantially better result” than most other ARKK holdings. Berkeley Group Holdings PLC (LSE:BKG)’s Berkeley Lights was down 95% from its 5-year high, while 43% of the ETF’s holdings declined by 75%.  Invitae Corporation (NYSE:NVTA), an American biotechnology company, was down 89.44% and Robinhood Markets Inc (NASDAQ:HOOD), an American financial services company, was down 84.44%. “Given that Tesla is by far the largest ARKK holding with a 10.55% weight, its smaller decline relative to the rest of the ETF’s holdings has helped ARKK from falling even more,” according to Bespoke analysts. However, the report also stated that “it’s going to take a huge rally in the ‘growth’ space,” and that ARKK’s average holding would have to increase by 348% to get back to its previous high.