Cathie Wood’s “disruptive innovation” strategy gained much steam in 2020. ARK Invest’s flagship fund, the ARK Innovation ETF’s (ARKK), gained 153% in 2020. However, ARKK sank 23% amid a broader market rally in 2021.
Furthermore, there appears to be a conviction building that Wood’s fund lineup’s losses will accelerate. According to data from IHS Markit Ltd. (INFO), short interest as a percentage of shares outstanding on ARKK, rose to a record of 8.6%. In addition, bets against Wood’s other funds, the ARK Genomic Revolution ETF (ARKG) and the ARK Next Generation Internet ETF (ARKW), were also near their record levels.
