Stock market faces the most 'massive misallocation' of 'capital in the history of mankind,' says ARK's Cathie Wood

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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 told the business network in a Thursday interview that the gravitation of money managers toward benchmarks, rather than taking risk on what she views as potentially game-changing technology in gene editing, electric vehicles and artificial intelligence, among others, was creating a “massive misallocation of capital” in markets that could be the biggest in “the history of mankind.”

So far in 2022, each of the flagship ARK Innovation’s ARKK, -6.44% 40 holdings had fallen more than 10%. The fund itself has slumped 26% year to date, and lost more than half its value over the past 12 months, FactSet data show. “We are not going back to the old ways of doing things,” she said about the surge in value in the cache of stocks bought by ARK that saw revenue accelerate during the COVID public health crisis.

She reiterated that investors in ARK need to maintain a 5-year time horizon to eventually reap investment rewards.

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Cathie Mood. Lol

Her performance was pitiful. No remorse. She’s dealing with other people’s money. Buying on sales not earnings.

CathieDWood CEO's have to close naked shorts and lover leveraged positions they now have to report... so yes... the market is crazy right now. It being rigged is bad enough.

She’s right…..except for Bitcoin

Funds will be allocated to where there are profits. That’s not a “miss-allocation.”

$AGIO AgiosPharma 1.4 Billion in Cash a drug that’s also in 3 Other trials as well this drug is a blockbuster drug and have a priority voucher to sell, giving the company additional 100 million in cash plus drug sales starts in 2 weeks $SPY $XBI $SPX

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