Fund Shorting Ark Innovation earns $234 million in assets

The anti-ARKK fund is skyrocketing. The Tuttle Capital Short Innovation ETF (SARK), designed to provide an inverse daily return to the Ark Innovation ETF (ARKK) – Get the ARK Innovation ETF Report, has now amassed $234 million in assets, Bloomberg reports.

The Tuttle fund is less than three months old and started on November 9th. The Ark fund, of course, is managed by famed investor Cathie Wood.

The Ark fund has fallen 42% since Nov. 9 as rising interest rates decimated speculative tech stocks. Meanwhile, the Tuttle fund, which uses swap contracts to short the Ark fund, jumped 56%.

To be sure, the #1 Ark fund holding Tesla (TSLA) – Get the Tesla Inc report has actually gained 9% over the past three months. But #2 Zoom Video Communications (ZM) – Get the Class A report from Zoom Video Communications, Inc. plunged 46%, No. 3 Teladoc Health (TDOC) – Get the report from Teladoc Health, Inc. dropped 48%, and #4 Roku (ROKU) – Get the Class A report from Roku, Inc. lost 55%.

It was therefore a good time to take the opposite view of Wood’s bet on what she calls “disruptive” technologies. And apparently there are investors willing to do so.

About $200 million of assets in the Tuttle fund come from the influx of investors, Bloomberg reports, with the rest resulting from appreciation in the assets themselves.

“Any independent ETF that gets more than $200 million in assets has beaten the odds, let alone doing so in its first three months,” Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, told the service. company press.

Matthew Tuttle, CEO of Tuttle Capital Management, told Bloomberg that his fund attracted money from investors even on days when the Ark fund was gaining. This shows that investors are using his fund as a hedge or bet on the macro environment, not just as a way to take advantage of the Ark fund’s decline, Tuttle said.

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