Cathie Wood has defended her company’s innovation-focused portfolio, saying she sees “spectacular returns” for Ark Invest over the next five years.
“Given our expectations for growth in these new technologies, I think we’re going to see some spectacular returns,” Ark Invest CEO told “Capital Connection” of the company. CNBC.
She said the company has seen “significant cash flow” since January 17.
“I think a lot of our investors are falling on average,” she said. A moving average refers to an investment strategy that buys more units of an asset when its price drops.
“You’d be surprised if you fell on average over time how quickly a strategy can get back above that average. And if we’re right, that would be significantly higher than that average within five years. coming,” Wood said.
Her comments come after her company’s flagship fund was caught in a recent tech-led sell-off. The Ark Innovation The ETF has nearly halved in the past 12 months.
“We were in a terrible bear market for innovation,” she admitted. “However, if you look from the bottom of the coronavirus to that top [of the Ark Innovation ETF] in february ’21, we grew 358%. “
Wood said the world is currently facing “all kinds of problems” and innovation is posed as the answer.
She pointed to the ongoing war in Ukraine, which has sent prices of some commodities such as oil soaring. The conflict could lead to “many needs being destroyed and replaced by innovation,” Wood said, such as a shift in electric vehicle use away from gas-powered ones.
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