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The strategy is “below industry standards”



According to Morningstar, Ark Investment’s approach to seeking generous returns in its flagship fund, Ark Innovation, may only attract investors who can withstand the potential risk of huge losses.

The company has just given a neutral rating to the popular exchange-traded fund (ETF) managed by Cathie Wood.

An analyst at Morningstar told CNBC that the company’s risk management approach was “below industry standards.”


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