ARK Investment’s Cathie Wood defends strategy in letter to investors

Suzanne McGee reports that Cathie Wood, the CEO of ARK Investment Management, is standing by the firm’s flagship fund despite recent losses. Wood believes that the fund’s fortunes will turn around once interest rates decrease. The ARK Innovation ETF has experienced a rollercoaster ride, with a significant gain in 2023 followed by a 12% decline this year. Despite this, Wood remains committed to investing in disruptive innovation. The fund’s top investments include Tesla, Coinbase, and Roku. Wood is optimistic about the future, anticipating significant profits as interest rates drop. Morningstar reported significant losses for ARK in the past decade, but Wood remains focused on AI-related investments for future returns. Wood expects a shift in the market towards a more diverse set of winners. She is confident in the fund’s potential for success in the coming years.