Cathie Wood doubles down on her investment strategy in the wake of the recent sell-off in growth-orientated stocks, which was triggered by inflation fears in the first quarter of 2021.
Cathie Wood Ark’s signature fund is on investors’ radar as her strategy has outperformed other actively traded funds with Ark’s Innovation ETF (ticker: ARKK) boasting returns of 150% over the last year. While most hedge funds experienced a contraction in their asset under management AUM Cathie Wood’s Ark ETF attracted $11 billion in inflows, which has taken Ark’s AUM to $50 billion.
“Cathie Wood Ark’s signature fund is on investors’ radar as her strategy has outperformed other actively traded funds with Ark’s Innovation ETF (ticker: ARKK) boasting returns of 150% over the last year”
WEALTH TRAINING COMPANY
The first quarter of 2021 Cathie Wood Ark’s saw fortunes reverse as capital rotated from growth to value on inflation fears, nevertheless Cathie Wood doubles down on her investment strategy
“This year we started very strongly innovation was on a hot streak continuing from last year, then as interest rates nearly doubled over one-quarter there was fear of inflation, and high orientation stocks were hit with a bout of volatility” said Cathie Wood.
The star stock picker is not abandoning her strategy, instead Cathie Wood doubles down on her investment strategy
“Nothing has changed for us. So, if we use our 5-year price targets instead of expecting a 15% annual compound rate of return, which is where we were at the peak in February. We now believe that our portfolios will deliver 20% compound return” she said.
“We now believe that our portfolios will deliver 20% compound return”
“The bout of volatility didn’t change the price targets they allowed us to concentrate on our highest conviction names” added Cathie Wood.
Cathie Wood doubles down on Electric Vehicles EVs, where her research takes a top-down approach
“The first principle I research how is an autonomous vehicle going to work that was a question we started within 2014” she said.
“We think we are going to see is exponential growth in the auto sector when it comes to electric vehicles for the first time in one hundred years”
– Cathie Wood
Cathie Wood believes that technological developments in battery technology and economies of scale reduce costs of EVs, which will soon lead to a sales boom.
“We are trying to figure out whether we at the point when technology is ready and costs are low enough to launch an exponential growth trajectory.
With the case of electric vehicles, with Musk’s advances in battery technology, particularly battery back systems and batteries as part of the infrastructure of the car we see cost dropping to such a low point that in 5 years the average electric vehicle, we believe will cost 18 thousand dollars USD compared to Toyota Camry which will still cost somewhere in the 25,000 to 26,000 USD range” she said.
“We think we are going to see is exponential growth in the auto sector when it comes to electric vehicles for the first time in one hundred years. This sector is causing exponential growth in a sector which most people think is still mature” she said.
“It is a different way of looking at the world, seeking out exponential growth opportunities seeing how fast they are likely to happen as costs and pricing fall” added Cathie Wood.
Cathie Wood doubles down on cryptocurrencies, concerning Coinbase, she said there will be a great opportunity to buy on the dip
She believes BTC could go to 500,000 USD on institutional buying
Cathie Wood’s Ark is upbeat on social e-commerce with Shopify being among the top 10 of her flagship fund. Concerning space investing she thinks lower orbit opportunities are greater than distant orbital opportunities.