How Cathie Wood leads a $45 billion ETF shop that’s
now facing market-related headwinds.
Scroll through financial-focused tweets most days, and you’ll find market watchers sounding off about everything from Federal Reserve Chairman Jerome Powell and bond yields to Barstool Sports’ Dave Portnoy and the price of Bitcoin — as well as Ark Investment Management and itsfounder, CEO and Chief Investment Officer Cathie Wood.
Nate Geraci, president of RIA The ETF Store and a host of ETF Prime podcasts,said in a March 4 tweet about the Ark Innovation ETF (ARKK): “From inceptionthru Feb 28, $ARKK was +36% annualized.” Just 64 of 8,637 U.S.-domiciled stockmutual funds in Morningstar’s U.S. funds database have risen as much over asimilar timeframe, he added.
From Feb. 16 through March 3, however, ARKK weakened about 19% whileBerkshire Hathaway improved 3%, according to Geraci’s analysis. “Wild,” hetweeted in a conversation that devolved into a debate over Buffett vs. Wood.
But while there are plenty of books to read about Buffett and his investing views,there aren’t any out yet on Wood — though her trades are posted daily. How did
Wood develop Ark’s “disruptive” investing style, which has been taking Wall Streetand Main Street by storm in recent years, and what lies ahead for the ETF shop?
BY GINGER SZALA AND BERNICE NAPACH