ARK Investment’s Cathie Wood defends strategy in letter to investors

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The ARK Innovation ETF fund has taken investors on a roller coaster ride in recent years

Cathie Wood, CEO of Ark Investment, speaks during an interview on CNBC on the floor of the New York Stock Exchange on Feb. 27, 2023.Cathie Wood, founder and CEO of ARK Investment Management, defended the strategy of the firm’s money-losing flagship fund, telling investors in a letter released late on Wednesday that its fortunes will reverse when interest rates fall.

ARK’s ETF, meanwhile, has seen net outflows of more than $1.8 billion in the last six months, according to data from VettaFi. “Exiting our strategies now would crystallize losses that lower interest rates and reversions to the mean should transform into meaningful profits during the next few years,” Wood wrote. “We are resolute!”Morningstar, the Chicago-based investment analysis company, earlier this year calculated that ARK’s losses had destroyed $14.3 billion in shareholder value in the 10 years ended Dec. 31, 2023. ARK and Wood did not respond to requests for comment on that report.

 

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