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2022 isn’t the best year for Cathie Wood. Her flagship ARK Innovation fund has lost 40%, adding up to the 24% drop last year. 

Wood’s funds rose to fame amid the pandemic when speculative tech stocks surged to all-time highs. Shortly afterward, money conditions tightened and interest rates were hiked, resulting in damage to tech stocks, and devaluing Wood’s funds. 

This year, Ark Invest sold around 90% of its holdings of micro-blogging platform Twitter. Few months later, a filing with the securities regulator on April 4 showed Musk had bought a 9.2% stake in Twitter for around $3 billion.

Following the news, Twitter shares soared 27% on the day, to three-month highs near $55.  But ARK had already sold most of its holdings even before Musk's revelation. 

ARK's funds held around 15.4 million Twitter shares at the very start of 2022, according to data from trading tracker Cathie's Ark. By April 7, that holding was closer to 1.3 million shares. That holding would now be worth over $700 million, versus its current holdings' $62 million.

"This could be setting up for another leadership change," she told Bloomberg Radio this week.  But she remained optimistic. "We truly believe that that rubber band will snap, and the performance will rebound," she said.