Cathie Wood’s ETF assets fall below $40bn, but loyal fans hang on

The founder of Ark Investment Management LLC now controls $39.7bn in her US exchange traded funds, down from more than $60bn at a peak in February, according to data compiled by Bloomberg.

With tech’s recent pummeling, the cash Cathie Wood is managing in her ETF lineup has just dropped below $40 billion — but her loyal fan base is largely hanging on for the ride. The founder of Ark Investment Management LLC now controls $39.7 billion in her U.S. exchange-traded funds, down from more than $60 billion at a peak in February, according to data compiled by Bloomberg. The firm is now the 11th largest issuer in the U.S., compared with seventh place earlier this year. A huge portion of the loss is due to the value of her holdings dropping sharply, as speculative tech names with soaring valuations and massive runs come back down to earth. Her flagship ARK Innovation ETF (ARKK) has fallen about 35% from its high. Still, the mass exodus some had anticipated during a period of underperformance hasn’t yet materialized, with traders pulling just $76 million from the fund in April and $301 million so far in May, compared to the $7.1 billion added in the first three months of the year.