ARK's new fund to invest in private innovation companies
Ark Invest's Cathie Wood is taking another stab at investing in "disruptive innovation," this time through a new fund that will target illiquid securities including those of private companies.
According to the SEC filing, The ARK Venture Fund does not currently intend to list its shares for trading on any securities exchange and does not expect any secondary market to develop for its Shares.
To provide some liquidity to Shareholders, the Fund is structured as an "interval fund". An interval fund is a closed-end mutual fund that does not trade on an exchange and only allows investors to redeem shares at particular intervals and in limited quantities.
An investment in the Fund is suitable only for long-term investors who can bear the risks associated with the limited liquidity of the Shares. The fund will conduct quarterly repurchase offers for between 5% and 25% of the fund's outstanding shares of beneficial interest at net asset value
The fund's minimum initial investment threshold of $1,000, will look to invest in firms involved in a wide range of areas including artificial intelligence, next-generation internet, automation, and crypto and blockchain related companies, the filing said.
$ARK Innovation ETF(ARKK.US$, the flagship product of ARK invest, has lost more than half its value from its peak as worries of a ramp-up on interest rate hikes by the Fed send growth stocks cratering. The fund ended last year down 23% after posting a return of 150% in 2020. Ark's other funds are also down more than 20% so far in 2022.
Would you invest in Cathie Wood's new fund?![]()
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Source: SEC, Yahoo Fnance, Reuters
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hgar : if cathie is as proficient at finding overhyped, unprofitable companies with high levels of competition in the private sector as she is in the public sector, this new fund will go swimmingly
buster 48118 : I like her she's has a good eye on innovation.
Noah Dibble : I do not know a lot about her so I shall politely refrain from judgement, however, I do know that I definitely adore the name she has chosen being ARKK because it brings back very old memories. I I am very curious to observe Cathys' countenance. I believe she Has an uncanny ability to follow the money. Perhaps, it even follows her, now would that not be grand.?