“Star” investor Kathy Wood defended the choices of the fund she manages, ARK Invest, against the significant losses it shows, saying, among other things, that the current picture in the stock market is probably the most wrong distribution of funds in history.
In particular, speaking to CNBC, Katie Wood criticized the tendency of fund managers to invest in index stocks instead of risking more with titles that – as she believes – will “change the game”, mainly companies in the field of genetic technology, electric vehicles and artificial intelligence.
Something that, according to K. Wood, creates “a massively wrong distribution of funds”, and probably “the largest in the history of mankind”.
As Wood has put it, “index stocks are where they’s in the past because of their success. If we’re right, these are the companies that will suffer the most.”
Asked whether the companies in which she has invested and followed a parabolic course in the midst of a pandemic, can return to their previous highs, K. Wood answered that she is absolutely convinced.
It is worth noting that Wood’s statements came at a time when the 40 innovative technology titles, including the EKF crown of ARK Innovation, have all recorded losses of more than 10% in 2022, while the ETF itself has fallen by 26% since its inception. year, having lost more than half of their value in the last 12 months.
Wood, however, defended her choices by saying “we will not go back to the old ways of doing things” when asked about other titles bought by ARK and which saw their revenue soar during the pandemic.
He also estimated that technology giants such as Meta, Apple, Amazon, Google, Netflix will face the biggest challenges if interest rates rise and inflation persists.
At the same time, he reiterated that investors in ARK need to maintain a 5-year time horizon to see their real investment profits.
“If we are right and our growth rate (is) 15% on an annual basis over the next five years, interest rates and inflation will not be a problem for ARK’s investments,” he said.
Finally, for those who bet on ARK failure, Wood said that “sorting technology in the US is ridiculous, I think.”
Source: Capital
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