Cathie Wood’s Popular Touch Deserts Her in ARK Flows, Venture Fund

There was a time when investors would send money into Cathie Wood’s funds even when they were struggling. This year, even as ARK Investment Management roars back, the flows are notable by their absence.

All but one US-listed ARK exchange-traded fund, the flagship ARK Innovation Fund (ticker ARKK), have seen outflows in 2023, despite the fact that most funds have at least matched — and in some cases trounced — the performance of the S&P 500 Index, according to data compiled by Bloomberg.

Meanwhile, Wood and her firm have waived some fees for one of their newest vehicles, the ARK Venture Fund (ARKVX), amid lackluster demand from investors.

It’s a sign that the cult-like fan base Wood amassed after her flagship’s gain of nearly 150% in 2020 may be finally losing interest after a rough 2022. ARKK tumbled a record 67% last year as the Federal Reserve’s interest-rate hikes dented prospects for its highly speculative, often profitless technology stocks. While many investors still bought the dip throughout last year’s selloff, enthusiasm is now waning.

“There’s certainly a camp of investors that may have lost some faith,” said Nate Geraci of the ETF Store. “How could you not?”

A representative from ARK did not respond to a request for comment.