‘We’re investors, we’re not supposed to mimic benchmarks’: Cathie Wood of Ark Invest

Known for her ‘active ETF’s’ enormous returns during the pandemic, thanks to big bets on the likes of Zoom and Tesla, Cathie Wood is synonymous with bold investing.

But, while she has many accolades, her style and bold takes have not gone without criticism. The fund’s performance has been mixed, witnessing huge swings up and down since its inception, which some critics blame on her heavy reliance on instincts and poorly timed exits.

In this episode, Dave Baxter and Cathie discuss those criticisms alongside the automated vehicle space in the US and China, digital wallet companies, and what it would take for Ark to buy more of the Magnificent 7.

Timestamps

1:15 Tesla

9:05 How sensitive is the Innovation Fund to AI euphoria

12:42 Risks in some of the stocks & Tesla’s risks in China

15:18 Digital wallets ie. Coinbase & Robinhood

20:24 Zoom

23:57 The Magnificent 7 & what happens next

29:46 Cathie’s take on inflation and interest rates

31:53 How much politics is influencing stockpicks

34:11 The Innovation ETF’s focus on the US and looking further afield

37:38 Merit to regulation

39:04 Controversy around intellectual property and AI

41:58 Criticism of Ark’s approach and how the funds are run

47:32 Poorly timed exits & Nvidia

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