Cathie Wood’s Famed Market-Beating Return Is Disappearing
- ARKK total return since first day has dropped below S&P 500
- Fund has been hit by a selloff across technology stocks
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The outsized gain that turned Cathie Wood into one of the world’s most-famous proponents of active fund management is quickly evaporating as some of her favorite stock picks tumble.
After years of trouncing the market and just days after Wood issued a broadside against passive investing, her flagship ARK Innovation ETF (ticker ARKK) has given up all the outperformance it once enjoyed against the S&P 500 Index. Wood’s strategy of picking stocks involved in “disruptive innovation” has fallen victim to the tech meltdown as investors flee high-priced growth shares in an environment of rising interest rates and high inflation.