Home Business Cathie Wood still focuses on technology, does not mind criticism

Cathie Wood still focuses on technology, does not mind criticism


Cathie Wood, CEO of Ark Investment Management, it’s not going through a good period: the six ETFs under its technology-focused management company had a very bad 2021 and are continuing on the same path in the first few days of trading this year, recording losses between 4 and 9%.
Despite this, the American star of investments, which in the past has focused decisively on the title Tesla, he doesn’t change his mind about some hi tech titles, in which the same sees “opportunities for exponential growth”.

During his latest monthly webinar, Wood explained to attendees that some innovative technology companies, such as Zoom (teleconferencing service company) e Teladoc (multinational telemedicine company), both major holdings in some Ark funds are ‘the real deal’. Nothing to do with the tech bubble over 20 years ago. This despite the fact that the titles are certainly not shining (-54% in one year for Zoom, -65% for Teladoc).

“Our conviction has strengthened over the past year. It hasn’t diminished, ”Wood said, adding that Ark critics“ don’t really know the technology and how powerful the emerging trends are ”.

Cathie Wood, disputed strategies on technology

Wood, it must be said, has often been criticized for hers investment choices. So much so that last December the London company Leverage Shares has announced the debut in Europe of some ETPs (Exchange traded products) that allow you to bet for or against the US investment star

.For Amy C. Arnott, Morningstar portfolio strategist, the case of Ark Innovation is a clear example of how one should not invest.

Over the past five years, the ETF has had an annualized total return of 41.3%, placing it among the top US equity funds. Over the same period, the return for investors was much lower. “When we look at the ETF entry and exit timings, we see that underwriters have achieved less than a quarter of the total performance, ”Arnott explains. “Land our estimates say that the investor return was 9.9% over the five-year period, therefore lower than the S&P 500 by about 8 percentage points per year ”.

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