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Cathie Wood is CEO, CIO and founder of ARK Invest, a closely watched investment fund known for its prescient high risk, high reward strategy (Wood was early on Bitcoin and Tesla) and radical transparency (she explains her decisions to buy and sell in a public newsletter). ARK has had a wild ride in the last two years. Its flagship innovation ETF was up 150% in 2020, gaining Wood celebrity status, but has been down 38% in the past 12 months. Wood spoke with TIME about her long- and short-term predictions for the business world and what she has learned from her fund’s bumpy ride.
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This interview has been condensed and edited for clarity.
Contents
In this era of unpredictability, are you leaning into the risk or are you leaning away?
Typically, we lean into it, and this time is no exception. We tend to concentrate our portfolios towards our highest conviction names, during risk-off periods [times when most investors are selling off risky stocks and investing more safely] in particular. One of the reasons we do that is because in the traditional asset management world, portfolio managers and analysts tend to diversify during risk-off periods to get closer to their benchmarks. So typically, they will be selling our names and we will be waiting to buy them.
What are the big trends you’re watching for in 2022?
Well, we’re very excited about the five innovation platforms around which we have centered our research that are scaling exponentially. DNA sequencing, which we think is going to transform healthcare completely. Robotics is the second, especially adaptive robotics, which can work alongside human beings. Many people might worry about the impact of robotics on jobs, but as we’ve learned through this pandemic, there are major labor shortages, especially in the jobs that are very rote, which are perfect for robots. The third…
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Source : time
