- Cathie Wood's flagship fund ARK Innovation ETF (NYSEARCA:ARKK) has reportedly hit a new record in overall short interest against the exchange traded fund.
- The investment community that once rallied behind Wood seems to be turning its back, as 12% of the shares traded on ARKK have been shorted, where traders are betting against the fund, as per the Financial Times.
- While 12% may not seem high, it actually represents $2.7B of stock, which is way more than the $40M that ARKK saw in short interest just a year ago, the FT said.
- Market participants are apparently growing wary about an ETF that's filled with high-flyer names such as Tesla (NASDAQ:TSLA), Coinbase Global (NASDAQ:COIN) and the latest addition of Robinhood Markets (NASDAQ:HOOD).
- ARKK has been bleeding out funds, as it has seen $1.05B of net capital outflows over the last four months dating back to April 6, according to ETF Database.
- Fueling the fire further is the recent filing from Tuttle Capital Management to launch the Short ARKK ETF (SARK), a new ETF that aims to track the inverse performance of ARK Innovation ETF.
- As for ARKK, it's made some recent gains of late, rising 29.16% from its YTD low back on May 13.
- However, the fund is still down 21.37% since peaking in mid-February. Moreover, ARKK is only ever so slightly positive for 2021, gaining just 0.87% YTD.
- Daily price action for ARKK: -0.81% in pre-market trading.
- Regardless of the naysayers, Wood continues to focus on ARK’s mission to identify and capitalize on what she believes are organizations that can help provide gains for her investors over a longer time horizon. For example, Wood has scooped up more than $3M of HOOD so far.