Cathie Wood’s ARK Faces Loyalty Test After Tech-Stock Rout

Cathie Wood says the high-risk stocks in the exchange-traded funds sold by ARK Investment Management LLC are so cheap that they will inevitably rise. A surprising number of investors are willing to give it a shot.

Over the past week, with prices in the back at mid-2020 levels, investors have put about $ 168 million into the fund, boosting its net assets to $ 11.8 billion, according to FactSet. It is a noteworthy vote of confidence for a fund that has dropped 27% this month and lost half its value over the past year, as its brand of investing in largely unprofitable, untested firms has fallen out of favor.