Short sellers have “ramped up bets against Cathie Wood’s flagship Ark innovation fund (ARKK) as belief in its strategy shows signs of faltering.” This according to a recent Financial Times article.

The article reports that a record 12 percent ($2.7 billion) of the fund is being shorted by investors compared to $40 million one year ago.

The increased doubt reflects skepticism regarding what the article describes as a “tech-heavy strategy” that has worked well for the ARKK fund as “the markets bounced back from the shock of the coronavirus lockdowns last year.” Wood is “known for bold bets and striking pronouncements on what she sees as rosy prospects for assets,” the article reports, citing Tesla and Bitcoin as examples.

According to Debbie Fuhr, founder of consultancy ETFGi, many traders view ARKK’s holdings as “risky and expensive.” She argues, “Some investors believe there is no further upside in the tech sector as it is expensive, may be in bubble territory and other parts of the U.S. economy are likely to do better as the world reopens.” However, Fuhr notes that the uptick in short selling could be misguided: “Going short is a risky trade and the likelihood of making a lot of money is very small.”