Ark explains its ‘dramatic under-performance’ to Kiwi investors
Renato Leggi, client portfolio manager at Florida-based Ark Invest, told a webinar last week aimed at Kiwi clients that while tech stocks are being punished by the market, the environment is “starkly different” from the tech and telecom boom and bust of 1999-2003.
The biggest difference this time around is that many tech stocks, including some in Ark’s portfolio, have strong revenues.
But investors seem not to have read the memo and have fled to broad-based indices and defensive stocks. Many of these new tech companies are now trading at valuations and stock prices that are below pre-pandemic levels.
Ark has been hammered hard. At its peak, on 31 January 2021, units in the Ark Disruptive Innovation fund were trading at US$159.70. Their most recent trade was at US$45.41. The fund more than doubled in size from its inception on 30 September 2019 to its peak, then slumped sharply, halving in value.
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