Analysis: Wood’s ARK Slammed by Higher Interest Rates in 2022 Along with Other Growth Funds (Reuters)
Cathie Wood’s ARK Innovation Fund, which more than doubled during the pandemic rally, is on pace to finish near the very bottom of all U.S. mutual funds in 2022 after surging inflation and higher interest rates dried up appetite for high-growth shares. The ARK Innovation Fund has lost around 67% year to date, more than tripling the decline of the S&P 500 index (.SPX). Its tumble has made it the worst-performing among all 537 U.S. mid-cap growth funds and put it near the bottom of all U.S. equity funds tracked by Morningstar, according to the firm’s Dec. 16 ranking.
2 Magnificent Growth Stocks the Smartest Investors Are Buying Before the Next Bull Market (The Motley Fool)
Hedge fund managers with a history of achieving market-beating returns are buying these growth stocks. Even as the S&P 500 and the Nasdaq Composite dipped into a bear market this year, some of the smartest hedge fund managers out there weren’t dissuaded and kept buying growth stocks eagerly. Karthik Sarma of SRS Investment Management took a stake in Shopify (SHOP -1.36%) in the first quarter, and he built it into his fifth-largest position by the end of the third quarter. Meanwhile, David Shaw of D.E. Shaw & Company more than doubled his stake in The Trade Desk (TTD -2.67%) since the first quarter.
These Old-Fashioned Hedge Funds are Cashing in Like it’s the GFC (AFR.com)
Hedge funds trading bonds and currencies are on track for their best year since the global financial crisis, boosted by the steep interest rate rises that have inflicted heavy losses on equity specialists and mainstream investors. So-called macro hedge funds, made famous by the likes of George Soros and Louis Bacon, endured a barren period when markets were becalmed by trillions of dollars of central bank bond buying after 2008. But this year they have thrived thanks to seismic moves in global bond markets and a bull run in the dollar as the US Federal Reserve and other central banks battle soaring inflation. Among the winners have been billionaire trader Chris Rokos, who recovered from losses last year to gain 45.5 per cent in 2022, helped by bets on rising interest rates, including during the UK’s market turmoil in the autumn.
Photo by Marga Santoso on Unsplash
Why This Quant Fund Manager Thinks Value Stocks Are The Place To Be For Now (Forbes)
A few may have held out hope for a so-called “Santa rally” into the end of the year, but those hopes have failed to pan out. Historically, the last five trading days of December and the first two of January have been good for investors even though professional traders often take some days off during this period. A study conducted by LPL Research in 2020 found that the average return of the S&P 500 during those seven days is 78% more likely to be positive than during any other seven-day period. However, this has been a challenging month that capped a particularly difficult year for Wall Street.
Hedge Funds Got Their ‘Hedge’ Back in 2022: Morning Brief (AOL)
Hedge funds have garnered a bad rap in recent years, and rightfully so – performance has been lackluster and the exorbitant fees collected by firms have been hard to justify. Last year, hedge funds delivered broad-based annual returns of 10.3%, per the benchmark HFRI Fund Weighted Composite Index from Hedge Fund Research. The S&P 500 returned nearly 27% over the same period.
