According to Cointime, Cathie Wood, CEO of Ark Invest, has revealed that her flagship innovation fund, the Ark Innovation ETF, has fully exited China due to the country's economic slowdown. The fund, which manages nearly $9 billion in assets, has divested from stocks generating revenue in China. This move forms part of a broader consolidation of the fund's portfolio towards high-conviction bets, such as Tesla, Coinbase, Roku, and Zoom, especially during market downturns.
In an interview with CNBC, Wood mentioned that Ark Invest typically focuses its strategies on the highest conviction names during bear markets, ultimately leading to the removal of Chinese stocks from the portfolio. Consequently, the fund no longer has any exposure to China in its flagship strategy.