ARK Innovation is down 9.2% in May but Cathie Wood is not bothered by the rough start, according to MarketWatch. Wood says that the 5-year time horizon of the fund’s perspective means that nothing has changed in its top picks, except the price.
Wood expects ARK to generate 25%-30% annual return due to the recent plunge in prices, up from 15% set in February.
ARK’s big bets on high growth stocks saw it turn huge earnings upon recoveries from the pandemic lows in March last year.
Cathie Wood’s fund is almost 94% up in the last 12 months but has shed 11.9% this year and plunged 31% since its mid-February high.
Tech and high-growth stocks got a hit in February and March as rising Treasuries forced a move into value and cyclical stocks.
Wood expects the broadening of the bull market apart from the tech stocks to add a positive momentum in the bull market.
Wood also revealed that collapsed Archegos Capital Management had provided ARK with seed capital for its first four ETFs.ARK Innovation ETF is currently declining. ARKK is down 3.04%.
