Analysis: Hedge funds worry about market fallout from Tesla, ARK and spiking yields
Some hedge fund managers are getting concerned about the money that has flooded into high-flying stocks like Tesla and the popular ARK fund as bond yields spike and growth stocks take a hit.
The popularity of stocks like Tesla helped Cathie Wood’s $26.6 billion ARK Innovation ETF become the top-performing actively managed U.S. equity fund tracked by Morningstar last year.
But even as shares of Tesla plunged this week and Wood’s fund fell, she increased the fund’s bet on the automaker. The ARK Innovation ETF is down 15% this week and Tesla is down 13%, along with declines in other high-flying technology stocks.
Analysis: Hedge funds worry about market fallout from Tesla, ARK and spiking yields reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.