Are you looking for a success story that will leave you inspired? Look no further than Cathie Wood and her Ark Investment Management firm. Despite facing losses in some of their high-profile investments, the company has surpassed $300 million in fees – an impressive feat considering the economic turmoil of recent times. In this blog, we’ll explore how Wood’s bold investment strategy and unwavering determination have propelled her to legendary status in the world of finance.
Ark’s losses
Ark’s losses have been mounting since the beginning of the year. The fund has lost money in nine out of 11 months, and is down 19.7% since its inception in October 2014. However, Ark has still managed to bring in $1.1 million in fees from investors, despite the losses.
The fund’s performance has been hurt by a number of factors, including the collapse of oil prices, the troubles at Valeant Pharmaceuticals, and the underperformance of Tesla. However, Ark has been able to offset some of these losses with gains in other stocks, such as Apple and Amazon.
Despite the recent losses, Ark remains one of the most popular funds on Wall Street. Investors are attracted to its aggressive growth strategy, which has produced impressive returns in the past. For example, the fund gained 38% in 2013 and 42% in 2014.
The question now is whether Ark can continue to bring in new investors at a time when its performance is lagging behind the market. So far, it seems like investors are still willing to bet on Cathie Wood and her team’s ability to find the next big thing.
Ark’s fees
1. Ark’s fees
Ark’s fees are based on a percentage of assets under management, and they vary depending on the type of account. For example, Ark’s management fee for its mutual fund is 1.5% annually, but its management fee for its exchange-traded fund (ETF) is 0.75% annually.
In addition to these asset-based management fees, Ark also charges performance fees in some cases. For instance, Ark’s mutual fund has a performance fee of 20% of any gains above a 6% benchmark, while its ETF has a performance fee of 15% of any gains above a 3% benchmark.
Overall, then, Ark’s fees are relatively high when compared to other investment options. However, it should be noted that Ark has outperformed the vast majority of its competitors over the long term; this superior performance may justify the higher fees for some investors.
Cathie Wood
As the CEO and CIO of Ark Investment Management, Cathie Wood has been a driving force behind some of the most innovative and successful investment vehicles in recent years. Despite heavy losses in March, her flagship Ark Innovation ETF (ARKK) still managed to bring in over $1 million in fees for the month.
While many other asset managers were forced to liquidate positions and close funds, Wood held firm and even made additional investments during the market crash. This bold approach has paid off, as Ark’s portfolio has recovered quickly and is now up nearly 30% since the lows of March.
With over $10 billion in assets under management, Cathie Wood is one of the most successful money managers in the world today. Her experience and track record are unmatched, and it’s clear that she knows how to navigate through volatile markets. For investors looking for exposure to cutting-edge companies and disruptive technologies, Ark is always worth a closer look.
The future of Ark
With Ark Invest’s main fund, the Ark Innovation ETF (ARKK), up nearly 70% this year, the firm has pulled in more than $1 billion in fees. That’s a big number for any asset manager, but it’s especially impressive given that Ark is just four years old.
Fees are one thing, but assets are another. And while Ark has been raking in cash from investors, it’s also been losing money on some of its bets. The firm’s flagship fund was down 3% last month, and is now down 18% from its peak in February.
But despite these losses, Ark is still managing to attract new investors and grow its assets under management (AUM). The firm now has $13 billion in AUM, up from $8 billion at the beginning of the year.
So what does the future hold for Ark? Can the firm keep up this growth?
It’s hard to say. While Ark has had a lot of success so far, it’s still a young company. And with markets currently experiencing a lot of volatility, it remains to be seen how well Ark will perform in the long run.
One thing is for sure: Cathie Wood and her team have built something special. They’ve created a unique investment firm that is attracting attention from all over the world. It will be interesting to see where Ark goes
