Ark Invest, the firm led by famed investor Cathie Wood, bought up about US$41.9 million in tech stocks during Tuesday’s market collapse, as she doubles down on her largest bets amid the market downturn.
The Ark Innovation ETF fell 6.8% in Tuesday trading, outpacing the 4.3% drop in the S&P 500 and 5.2% drop in the tech-heavy Nasdaq composite as investors proved bearish on how the Federal Reserve may respond to Tuesday’s inflation data. Though it far outperformed the market during the pandemic’s early days in 2020, Wood’s fund has struggled mightily in 2022 as tech stocks drive the market downturn. The Ark Innovation ETF is down 55% year-to-date compared to a 17.5% drop for the S&P. Ark’s rise was largely tied to Wood’s early investment in Tesla, which remains the fund’s top holding, though Wood has sold off some of her fund’s position.
Wood said Tuesday the Fed is “overdoing” it with its hawkish monetary policy, saying ongoing rate hikes “will prove a mistake,” having previously warned about the risk of deflation. The Fed has raised rates three times this year and another hike is expected later this month, which some analysts predict could be 100 basis points.
Wood’s net worth fell 65% to US$140 million between June 2021 and June 2022 as her funds crashed back down to earth, according to Forbes’ estimates.
Further Reading
Ark Invest CEO Cathie Wood’s Net Worth Slashed By 65% As Tech Bets Sour In 2022 (Forbes)
‘Give Us Five Years’: Cathie Wood Defends Struggling Tech Stocks As Flagship Fund Craters (Forbes)
This article was first published on forbes.com