REUTERS: 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.
"Cathie Wood runs a very high-risk, high-beta tech portfolio, and to load up on Tesla right off its highs seems a little premature," said Peter Bortel, general partner at Bortel Investment Management, who said he put a short position on Tesla on Wednesday.Investors yanked US$465 million from Ark Innovation on Monday, according to Refinitiv data.
David Greenwald, associate portfolio manager at Toronto-based Waratah Capital Advisors, said his firm has been"broadly cautious" of high-momentum technology stocks given the rapid increase in Treasury yields year-to-date. Andy Pauly, managing partner at Warwick Investment Management, said"rapidly growing companies that are being priced on cash flows 10-20 years in the future are vulnerable to rising yields.”