(Bloomberg) – Funds managed by Cathie Wood are exiting Southeast Asian e-commerce giant Sea Ltd.
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The Ark Next Generation Internet ETF on Thursday sold some of its last shares in Sea, nearly a quarter after the flagship Ark Innovation ETF left the company in June, according to Ark trading data compiled by Bloomberg. .
Exchange-traded funds backed by Wood’s Ark Investment Management LLC’s have been selling shares in Sea since mid-May. The Ark Fintech Innovation ETF is currently the only one holding a stake in the Singapore-based company, according to data compiled by Bloomberg.
The Ark sale came as Sea lost about $175 billion in market value from a record high a year ago amid stiff competition from Alibaba Group Holding Ltd. and concerns about the company’s earnings prospects in an age of rising interest rates.
The stock is down nearly 80% this year and is now trading near pre-pandemic levels, a far cry from what was once the world’s hottest large-cap stock in 2020.
The company’s senior management is supported by Tencent Holdings Ltd. have begun giving up wages, tightening cost policies and laying off staff as it tries to limit losses and attract investors back.
“Ark sailing does not bode well for the ASEAN Tech giants,” said Nirgunan Tiruchelvam, head of consumer and internet at Aletheia Capital. “Sea needs to convince investors that it can generate cash sooner rather than later.”
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