Cathie Wood, the force behind Tesla’s spectacular surge, is having her worst run in a year as Ark’s big bets falter from Square to Teladoc Health

Cathie Wood’s Ark Innovation ETF has plunged 25 per cent over three weeks

Other funds like the Ark Next Generation Internet ETF and the Ark Genomic Revolution ETF fell 5.3 per cent and 4 per cent on Monday, respectively

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Catherine Wood, chief executive officer of ARK Investment Management LLC, speaking during the Bloomberg Crypto Summit on a laptop computer in Tiskilwa, Illinois on Thursday, February 25, 2021. Photo: Bloomberg

Published: 11:00am, 9 Mar 2021Updated: 11:38am, 9 Mar 2021

Cathie Wood’s exchange-traded funds extended their losses Monday, signaling no immediate end to the selloff that has wiped 25 per cent from her flagship investing strategy over three turbulent weeks.

That’s the longest stretch of weekly losses for the Ark Innovation ETF since the Covid-spurred meltdown last year, according to data compiled by Bloomberg. The fund fell for a fifth straight day, losing 5.8 per cent, with other products from Wood’s Ark Investment Management falling in lockstep.

Speaking in an interview with Bloomberg TV Monday night, Wood said the market is experiencing a rotation out of high-growth companies and into value stocks that is “happening very quickly” and is a sign of the bull market broadening. Her strategy in such an environment is to treat her more liquid holdings such as Facebookand Apple as “cash-like instruments” and concentrate her funds in higher-conviction stocks.

A broadening market “is good news,” she said. “We keep our eye on the prize. We have a five-year time horizon.”

A glance at some of the biggest Ark holdings helps explain the firm’s current woes: Tesla, its top bet, dropped 5.8 per cent Monday, while Square plunged 6.7 per cent, and Teladoc Health declined 6.9 per cent. All of them have been tumbling in recent weeks.