Cathie Wood has purchased $6.9 million worth of a rising technology stock, continuing her strategy of investing in high-growth companies despite ongoing volatility in her flagship fund.
Wood, who leads Ark Investment Management, is known for backing “disruptive” technologies including artificial intelligence, robotics and biotechnology.
Her trades are closely followed by investors as signals of future market trends.
The latest move comes as the Ark Innovation ETF, the firm’s flagship fund, faces a difficult year.
As of early April, the fund is down about 12 per cent, compared with a 3.8 per cent drop in the S&P 500.
Despite recent losses, the ETF delivered strong gains in the past, including a 35.49 per cent return last year, outperforming the broader market.
It also surged by 153 per cent in 2020, which helped establish Wood’s reputation as a leading growth investor.
However, the fund has also seen sharp downturns.
It fell more than 60 per cent in 2022, highlighting the risks associated with investing in high-growth technology companies.
According to Morningstar data cited in the report, the Ark Innovation ETF has posted a negative five-year annualised return of 10.6 per cent, compared with a 12 per cent gain for the S&P 500.
