Cathie Wood, Chief Executive Officer of Ark Investment Management, is an energetic investor targeting at tech stocks that she believes to have a “disruptive” impact.
She usually sells her preferred technology stocks to secure gains.
This week, she unloaded three technology stocks– all from her leading 5 holdings– in the middle of a hawkish Fed rate cut.
Investors and experts have actually blended viewpoints on Cathie Wood. Advocates see her as a visionary in technology investing, yet critics say she’s only an average fund supervisor.
Wood’s followers affectionately dubbed her “Mama Cathie” after she drew prevalent attention with an exceptional 153% return in 2020.
Nevertheless, her longer-term efficiency isn’t so rosy:
The flagship ARK Innovation ETF (ARKK), with $6.7 billion under management, has returned 11.08% year-to-date via Dec. 19, with an annualized three-year return of -15.50% and a five-year return of just 3.38%.
In contrast, the S&P 500 is up 24.66% this year, with a three-year annualized return of 9.98% and a five-year return of 14.65%.
Cathie Wood’s investment strategy simplified
Cathie Wood’s investment strategy is straightforward: Her ARK ETFs usually purchase shares in arising, high-tech firms in fields such as expert system, blockchain, DNA sequencing, energy storage, and robotics.
Wood thinks these firms will change sectors, but their volatility creates significant swings in ARK funds’ worths.
Wood recently shared optimism about a shift to looser regulations under Donald Trump’s presidency, specifically pertaining to innovation, cryptocurrencies, and digital possessions.
” In the last four years, we saw substantial focus toward really couple of stocks,” Wood said on CNN’s Within Politics Sunday on Dec. 1. “I think the marketplace’s mosting likely to widen out right now and reward companies that are at the leading edge of development.”
Not all financiers seem persuaded by Wood’s confidence. Over the past year, the ARK Technology ETF (ARKK) experienced a net outflow of virtually $3.3 billion, with $104.8 million exiting the fund in simply the past week, according to ETF study firm VettaFi.
