The ARK Innovation ETF (ARKK), managed by Cathie Wood's ARK Invest, experienced a sharp 5.01% decline during Wednesday's trading session. This significant drop comes in the wake of a damning Morningstar report that highlights ARK Invest as the worst-performing fund manager over the past decade.
According to the Morningstar analysis, ARK Invest has destroyed a staggering $13.4 billion in investor value over the last ten years. This places the firm at the top of the list of fund-management shops that have incinerated the most investor capital during this period. The report specifically mentions the ARK Innovation ETF as one of the worst offenders, ranking third among the funds that have lost the most value for shareholders.
The plummet in ARKK's share price reflects ongoing concerns about the fund's performance and investment strategy. Despite the broader technology sector performing well over the past decade, ARKK's concentrated bets on companies like Tesla, Roku, and Block have led to significant underperformance. This latest drop underscores the challenges faced by ARK Invest in maintaining investor confidence and reversing its track record of value destruction.