During the sharp decline of ARKK, "Wood Sister" bottomed out by buying Amazon, AMD, Meta, etc

"Wood Sister" buys on dips, once again betting on tech giants.

It is reported that during the market downturn, "Wood Sister" took the opportunity to enter the market and bought stocks of companies such as Amazon, AMD, and Roku. According to the daily statistics released by the company, ARKK also bought stocks of companies like Reddit and Meta.

These purchases took place earlier this week, as the US released disappointing July employment data, intensifying market concerns about economic recession, leading to global stock market volatility. Tech stocks, as a market barometer, were hit the hardest. Despite the strong performance of most tech stocks this year, they still could not fully withstand the downward pressure in the market.

ARKK has been in a loss position since the beginning of the week and continues to decline, closing at the lowest level since November on Wednesday. Its stock price has fallen by over 20% since the beginning of the year, with its market value evaporating by about 75% from its peak in early 2021.

Strategas' ETF strategist Todd Sohn said, "The past few years have indeed been a challenge for ARKK."

ARKK has always maintained highly concentrated investments through its ETF— the team tends to take advantage of significant market downturns to increase long-term investments in its strongest ideas.

"Wood Sister" won the favor of retail investors in 2020. At that time, her ARKK fund rose by 150% in a year of outstanding performance in tech stocks. Despite disappointing performance in the following years, including losses in 2021 and 2022, retail investors remained steadfast for a period of time, month after month pouring funds into the ETF.

Now, this enthusiasm is fading. The era when "Wood Sister" was invincible seems to be gone.

As of the Tuesday close, investors have withdrawn $2.2 billion from ARKK this year, marking the most severe outflow since the fund was established in 2014. According to data compiled by Sohn at Strategas, a total of $11.5 billion has flowed out of the seven active funds in "Wood Sister's" ETF lineup since the beginning of 2021.

Such a massive outflow of funds undoubtedly poses a significant challenge to "Wood Sister's" investment strategy. ARKK declined to comment on this