The firm soon experienced a drastic change in fortunes, however, as the US Federal Reserve started to hike rates aggressively last year to tame soaring inflation. As investors discounted the present value of the future cash flow of tech companies, the NAV of Ark ETFs nosedived.
After a tough 2022, which saw a drastic fall in its net asset value (NAV), Ark Invest (Ark) aims to turn its fortunes around by focusing on and raising stakes in the best companies in its portfolio. At the same time, Ark has reduced the number of companies in its flagship portfolio from 58 to 30.
Ark, founded by Cathie Wood, had a spectacular run in 2020 and 2021 when the NAV of its exchange-traded funds (ETFs) more than tripled. Wood was named the top stock-picker of the year in 2020 by Bloomberg’s chief editor for news, Emeritus Matthew Winkler.
