Ark Invest founder Cathie Wood said the massive sell-off in unprofitable tech companies that has slammed her investment performance has only increased her conviction in her positions, as she declared that “innovation is on sale” and urged investors to look beyond recent market volatility.
Wood spoke on Tuesday at Ark’s virtual Big Ideas Summit 2022, following a big drawdown in her flagship Ark Innovation exchange traded fund, known by its ticker ARKK. Shares in the roughly $12bn vehicle, which combines an ETF structure with a capacity to pick stocks, are down 27 per cent this year and have halved since a peak last February.
US stocks closed lower on Tuesday in the latest volatile session as investors prepared for the US Federal Reserve to raise interest rates as soon as March. Measures of expected short-term volatility in US stocks, such as the Cboe Vix index, were well above historical averages.