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Cathie Wood, chief of Ark Investment Management, is known for making bold moves, often buying when stocks are falling.
This week, she bought a stock that’s still sliding even as markets began to recover from tariff-driven losses.
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Wood’s funds saw a short-lived boost after Donald Trump won the presidency last November, but the gains didn’t last.
Ark’s flagship fund, the Ark Innovation ETF (ARKK) , is down 11.47% year-to-date as of April 25, while the S&P 500 and the Nasdaq Composite lost 6.06% and 9.98% during the same period, respectively.
Wood’s remarkable gain of 153% in 2020 won her a loyal following, but her uneven long-term performance has made others skeptical of her aggressive style.
As of April 24, Ark Innovation ETF, with $5 billion under management, has delivered an annualized three-year return of negative 1.59% and a five-year return of negative 0.70%.
In comparison, the S&P 500 index has a three-year annualized return of 10.38% and a five-year return of 15.86%.
Cathie Wood’s investment strategy
Wood’s investment strategy is straightforward: Her Ark ETFs typically buy shares in emerging high-tech companies in fields such as artificial intelligence, blockchain, biomedical technology and robotics.
Wood says these companies have the potential to reshape industries, but their volatility leads to major fluctuations in Ark funds' values.
Related: Cathie Wood's net worth: The Ark Invest CEO's wealth & income
Over the 10 years ending in 2024, the Ark Innovation ETF erased $7 billion in shareholder wealth, according to a recent analysis by Morningstar’s Amy Arnott. That made it the third-biggest wealth destroyer among mutual funds and ETFs in the ranking.
Wood recently raised concerns about Trump’s tariffs on her "In The Know with Cathie Wood" channel.
"Things do feel a bit chaotic out there and the markets are convulsing as a result. There's a lot of uncertainty," she said.
She warned that if Trump’s tariff plan isn’t handled carefully, it could cause a bear market or recession, though she’s hopeful that negotiations could ease tensions.
“Trump wants to be one of the greatest presidents ever... he’s not going to get there by throwing the economy into a recession and the stock market into a bear market,” she said.
Not all investors share Wood's optimism. The Ark Innovation ETF has seen a net outflow of $2.13 billion over the past 12 months through April 24, according to ETF research firm VettaFi.
Cathie Wood buys $9.7 million of Iridium stock
On April 22 and 23, Wood’s Ark funds bought 418,938 shares of Iridium Communications Inc (IRDM) . That chunk of stock is valued at roughly $9.7 million.