Rally in Cathie Wood's fund offers hint of optimism in slumping market

Investors hunting for bargains in the stock market's carnage are scooping up shares of an old favorite: Cathie Wood's $ARK Innovation ETF(ARKK.US)$
Shares of the fund, which is largely populated by growth-oriented technology companies, have advanced 17% since bottoming May 11. They have outpaced the $S&P 500 Index(.SPX.US)$ , which has edged up 4.4% over the same period.
ARKK focuses on the theme of "disruptive innovation," with top holdings including $Zoom Video Communications(ZM.US)$ $Tesla(TSLA.US)$ $Roku Inc(ROKU.US)$ and $Block(SQ.US)$ It also has positions in $Teladoc Health(TDOC.US)$ $Coinbase(COIN.US)$ and $Robinhood(HOOD.US)$ . Some of the companies don't consistently turn a profit and are valued on expectations of strong growth. That makes them especially vulnerable to higher borrowing costs.
At least some of ARKK's holdings might have benefited from short sellers buying shares to close out their bets against the stocks. Short sellers have been covering positions against Zoom in recent weeks, according to data from S3 Partners. Short bets against other major holdings, including Tesla and Block, increased lately.