Cathie Wood’s Ark Innovation Fund Is Heading To Its Worst-Performing Month

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Cathie Wood
Cathie Wood CEO of Ark Invest

Cathie Wood’s ARK Innovation fund is heading to its worst-performing month since its creation, with a 29% plunge in April. 

Following the easing of the Covid-19 pandemic Fed hawkishness boosting bond yields, Wood’s heavy bet on high-growth stocks has pushed the majority of her funds to a negative area. 

Her flagship fund plummeted roughly 70% from its all-time high in 2021 when the Covid-19 benefactors such as Zoom Video and Teladoc were rallying. On Thursday, Teladoc declined 48% after reporting a massive first-quarter loss and weak 2022 guidance resulting in a $400 million loss to Wood on that stock alone.

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Wood rose to popularity in 2020 as her stock picks massively outperformed the broader market earlier in the pandemic. But gains have vanished, and her longer-term outperformance is shrinking. 

Ark Innovation ETF has now returned about 109% over the last five years, while the S&P 500 has returned about 97%. 

Meanwhile, Wood has warned that the recent slide in stocks and bonds could be a warning sign that the Fed could trigger a financial crisis.