Cathie Wood (Photo: Bloomberg)Ark Investment Management, the sponsor of this year’s best-performing ETF, has won its battle with minority owner Resolute Investment Managers for control of the firm.
Ark Founder, CEO and Chief Investment Officer Cathie Wood has entered into agreements with Resolute to repurchase the option that retains her majority interest in the firm, for an undisclosed sum, and extinguishes Resolute’s option to acquire an additional equity stake, according to a joint press release.
Resolute, which is backed by private equity firm Kelso & Co., will continue to be a minority shareholder in Ark and provide distribution services for its products. In addition, the two firms will collaborate on building on additional digital distribution efforts.
“We can succeed only with strong partners by our side and we are delighted to have reaffirmed the partnership with Resolution for our U.S. distribution,” Wood said in a statement.
Gene Needles, Resolute’s chairman and CEO, said his firm is “pleased to continue being an instrumental part of Ark’s growth,” noting that the firm’s minority stake in Ark dates back to 2016.
Since that time, Ark has emerged as the sponsor of some of the best-performing actively managed ETFs that focus on disruptive technologies. This year alone, its Genomic Revolution ETF (ARKG) is up more than 210% year to date. Its Next Generation Internet ETF (ARKW) and Innovation ETF (ARKK) have each gained more than 160% year to date, and its Fintech Innovation ETF (ARKF) and Autonomous Technology & Robotics ETF (ARKQ) have each doubled in price since the beginning of the year.
It was this superlative performance that apparently led Resolute to try to seize control of ARK and Wood’s determination to retain it.
“We believe the global economy is undergoing the largest technological changes in history and ARK’s goal is to expose as many investors as possible to this transformation,” said Wood in her statement.
As of Nov. 30, Ark Investment Management LLC, headquartered in New York City, had approximately $43.6 billion in assets under management.
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December 29, 2020 at 02:36AM
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