Stock price when the opinion was issued
The ARK funds have likely bottomed, on the basis that interest rates and inflation have peaked. Although, even if the fund has truly bottomed, it may trade sideways for longer than an investor can wait, and we would not expect the parabolic action that it saw in 2020 to occur anytime soon. The underlying companies in the fund are growing fast, but valuations are still on the high end, and we feel it will take a substantial shift in market sentiment to a 'risk-on' environment to see material gains in the name. With that said, we think the name can do well over a long timeframe, and we think investors will need to be patient here.
Unlock Premium - Try 5i Free
Down 77% since highs. Disruptive names that were the flavour of the day, but now affected by rising rates. Names with high multiples, high growth. Can only perform well in a falling interest rate environment. Possible tax-loss sale.