ArkInvest founder Cathie Wood said Friday that the pullback of tech stocks wasn’t a source of concern and her long-term bets would continue to rise.
“I love this setup,” she said on CNBC Friday. “Closing Bell“The worst thing that could have happened to us is that the market focuses only on our stocks of the same kind: the innovation space.”
In rotation from high-growth regions of the market, some of Wood’s strategies have fallen by more than 30% from their February peak.
“From our point of view-a five-year period-nothing has changed except for the price,” she said. Back in February, Wood expected a combined annual rate of return of 15% from the strategy, but after the recent price decline, she expects that number to rise from 25% to 30%. ..
One name she sells is Apple while Wood sticks to her long-term bet. The fund is not allowed to hold cash, so instead, the dollar is reserved for what Wood, including Apple, called “cash-like innovation stocks.”
“FAANG certainly meets that standard — they behave like defenses,” she said. “During periods of volatility like we’ve just seen, we sell those shares and move to one of our purer or early-stage innovation companies that are being hurt by risk-off.”
Wood’s flagship fund, Ark Innovation, gained some position on Friday with a wide range of tech sectors, but the fund has fallen by more than 9% this week as well.
In the weakness, around $ 760 million We withdrew from the fund last week, according to FactSet data.
Still, despite the spill, Wood said the company hasn’t seen a month’s redemption yet.
Wood gained fame in 2020, when her suite of exchange-traded funds, focused on areas such as the Genome Revolution and robotics, far outstripped the wider market.
Her funding has become very popular as her company has become more prominent. Ark’s assets have grown from $ 10 billion to $ 80 billion in just 10 months.
“It’s a parabola. We’re used to exponential growth — that’s our job. Our arc strategy, the arc innovation platform we believe in, grows exponentially, so our Capabilities should grow exponentially. 10-80 billion was a little faster, “she said.
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Cathie Wood loves setting up shares after the sale and expects great profits from her strategy.
Source link Cathie Wood loves setting up shares after the sale and expects great profits from her strategy.