Cathie Is a Believer
Cathie Wood, the star fund manager and chief executive of ARK Invest, took to CNBC to defend the woeful performance of the manager’s suite of disruptive innovation funds.
Wood said Thursday the technology companies in her innovation-focused portfolio are drastically undervalued, and she believes that her fund’s recent sell-off is short-lived.
“We’ve had a significant decline,” Wood said Thursday on CNBC’s “Halftime Report.” “We do believe innovation is in the bargain basement territory. … Our technology stocks are way undervalued relative to their potential. … Give us five years, we’re running a deep value portfolio.”
Wood has stressed in recent weeks that the beatdowns inflicted on young, disruptive technology stocks are buying opportunities for her.
“Our biggest concern is that our investors turn what we believe are temporary losses into permanent losses,” Wood said.
Higher rates typically punish growth pockets of the market that rely on low rates to borrow for investing in innovation. And their future earnings look less attractive when rates are on the rise.
Wood said she doesn’t invest in any of those mature Big Tech companies like Microsoft.
“The important thing to keep in mind is the long-term horizon that we invest in,” she told investors last month. “We have a five-year horizon. I’ve never seen innovation on sale like it is today.”
Despite the big underperformance, her ARKK has attracted more than $70 million in net inflows year to date.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
