Ark Investment Management is having a tough time

Cathie Wood of Ark Investment Management was one of the most highflying fund managers on Wall Street last year, thanks in part to her Tesla call that paid off handsomely, among other things.

Now that government bond yields are rising, Ark’s funds that are focused on players with “disruptive innovations” are not doing that well (see here). Higher yields generally make growth stocks, including shares of big tech companies, less attractive.

For example, stocks of Tesla, Square, and Roku have dropped more than 20% since February 19.

Once of challenges of focusing on one style of company, whether it is an innovative tech or cutting edge biotechnology player, is that when the tide changes, you will get screwed!