Cathie Wood doesn’t give up on companies she believes in.
The Ark Invest chief is known for sticking with tech stocks she sees as “disruptive”, often buying even when they face setbacks.
This is what she just did, adding to a high-profile tech stock amid a post-earnings dip.
Wood’s funds have experienced a volatile ride this year, swinging from sharp losses to strong gains.
In January and February, the Ark funds rallied as investors bet on the Trump administration’s potential deregulation that could benefit Wood’s tech bets. But that momentum hit hard in March and April, with the funds trailing the market as top holdings slid amid growing concerns over the macroeconomy and trade policies.
Now, the fund is regaining momentum. As of July 25, the flagship Ark Innovation ETF (ARKK) is up 33.3% year-to-date, far outpacing the S&P 500’s 8.6% gain.
Wood’s remarkable return of 153% in 2020 helped build her reputation and attract loyal investors. Her strategy can lead to sharp gains during bull markets but also painful losses, like in 2022, when ARKK tumbled more than 60%.
As of July 25, Ark Innovation ETF, with $6.8 billion under management, has delivered a five-year annualized return of negative 0.03%. The S&P 500 has an annualized return of 16.46% over the same period.
Wood’s investment strategy is straightforward: Her Ark ETFs typically buy shares in emerging high-tech companies in fields such as artificial intelligence, blockchain, biomedical technology and robotics.
According to Wood, these companies have the potential to reshape industries, but their volatility leads to major fluctuations in Ark funds’ values.
Related: Cathie Wood’s net worth: The Ark Invest CEO’s wealth & income
The Ark Innovation ETF wiped out $7 billion in investor wealth over the 10 years ending in 2024, according to an analysis by Morningstar’s analyst Amy Arnott. That made it the third-biggest wealth destroyer among mutual funds and ETFs in Arnott’s ranking.
Wood recently said the U.S. is coming out of a three-year “rolling recession” and heading into a productivity-led recovery that could trigger a broader bull market.
In a letter to investors published in late April, she dismissed predictions of a recession dragging into 2026 and struck an optimistic tone for tech stocks.
“During the current turbulent transition in the US, we think consumers and businesses are likely to accelerate the shift to technologically enabled innovation platforms including artificial intelligence, robotics, energy storage, blockchain technology, and multiomics sequencing,” she said.
