One of most popular investors in world bought high and sold low
The most popular investment fund in 2020 and 2021 has sold its largest crypto-related holding, which is the stock of one of the largest centralized exchanges in the world: Coinbase. For some reason, ARK sold the crypto-related stake at an all-time high.
Following the release of the fund’s earnings, COIN stock plunged massively and lost more than 20% of its value almost immediately. Reportedly, the fund sold its holdings at $53, which makes its loss mind-blowing, considering the cost average for ARK’s purchase at $254.
ARK suffered a massive 85% loss, which could be one of the biggest blows to Cathie Wood’s fund that shows that the company’s short-term success is not necessarily a guarantee of productive performance in the future. long term. Funds that use a less risky investment strategy like Berkshire Hathaway have already outperformed many Ark Investment funds.
Unfortunately, the overall performance of ARK funds is not as good as some investors would expect, considering the fund’s heavy investments in technological stocks. Those stocks took a huge hit in 2022 after the tightening of the country’s monetary policy.
Coinbase doesn’t feel so good
While ARK’s performance shows only pain, Coinbase and crypto-related stocks take a hit in the first and second half of the year. COIN has lost almost 60% of its value in the last three months despite a strong downward trend since November.
The same story is applicable to cryptocurrency mining-related stocks that mostly follow the performance of the first cryptocurrency. The crypto market itself is currently sitting at around a 70% loss.
