Cathie Wood hammers on with her investment strategy of purchasing emerging-company stocks in the high-tech categories of artificial intelligence, blockchain, DNA sequencing, energy storage, and robotics.
She believes that companies engaged in these activities will change the world.
Cathie Wood’s fans see her as a technology guru. Cathie Wood made the limelight, after a massive return of 153% in 2020 when she was invited to explain her investment strategy in numerous media appearances.
“Cathie Wood’s fans see her as a technology guru”
WEALTH TRAINING COMPANY
Cathie Wood’s investment career has had its share of ebbs and flows
Renowned investment research firm Morningstar is highly critical of Wood and Ark Innovation ETF.
“Investing in young companies with slim earnings demands forecasting talent, which Ark Investment Management lacks, Morningstar analyst Robby Greengold wrote in a commentary. Results range from tremendous to horrendous,” wrote Morningstar.
Morningstar portfolio strategist Amy Arnott calculated that Ark Innovation destroyed $7.1 billion of shareholder wealth from its 2014 inception through 2023. Over the past decade, the ETF was No. 3 on her wealth destruction list for mutual funds and ETFs.
“Results range from tremendous to horrendous”
RAY DALIO
Cathie Wood hammers on with her investment style of throwing spaghetti at a wall to see if it sticks
But that requires patience and endurance, which is easy to do when gaming it with other people’s money.
David Loeb, another Wall Street titan, is also critical of Cathie Wood’s investing style.
After she wrote a commentary defending her investment philosophy in 2022, David Loeb wrote the following,
“Anyone teaching a value investing class or one on investment psychology should use this memo as a treatise to study the mindset of stonk hodlers,” he wrote. “Stonk hodlers” is slang for investors who hold (hodl) onto stocks (stonks) for too long.
“Ark Innovation ETF (ARKK), with $5.9 billion in assets, produced annualized returns of 14% for the past 12 months, and negative 27% for the past three years and positive 2% for five years” – Wealth Training Company
“Note the disparaging comments on luddites who look at archaic measures of value like cash flow as short-term traders,” he wrote.
But is Cathie Wood getting the stick for being female in a very male-dominated and misogynist world of high finance?
Those of you who have been on a trading floor in the 80s and 90s will know what we am talking about.
Cathie Wood hammers on despite her critics and did some notable divesting of $23 million of surging tech stocks
She frequently adjusts her top positions, adding to holdings when the stock falls and selling when it rises.
Early in the month prior, the Fed announced a 50 basis points cut, Cathie Wood did some notable buying.
Most recently, she sold the S&P 500 index to hit its 39th record close of the year.
Lacklustre results over the past five years and Cathie Wood hammers on as a fund manager
Ark Innovation ETF (ARKK), with $5.9 billion in assets, produced annualized returns of 14% for the past 12 months, and negative 27% for the past three years and positive 2% for five years.
But that does not come near to the S&P 500. The index registered positive annualized returns of 30% for one year, 11% for three years, and 16% for five years.
