Cathie Wood’s ARK Investment Management LLC is now focusing on shares of largely unprofitable companies.
Recently, Wood’s ARK Innovation bought more than $400 million of shares from companies such as Roblox Corp. (NYSE: RBLX), Block Inc. (NYSE: SQ), and Robinhood Markets Inc (NASDAQ: HOOD).
Shares of these companies are down at least 25% over the first six weeks of the year.
However, Wood says that the companies dealing with digital payments, video gaming, trading, and other industries have the potential to perform better.
Wood’s flagship ARK Innovation ETF (ARCA: ARKK) has seen a significant decline in January, dropping back to a level last seen in mid-2020.
The ARK Innovation ETF is down 24% this year, matching its decline in 2021.
ARK funds have experienced more than $8 billion in net outflows over the last seven months, more than any other ETF managers over the same period.
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