Cathie Wood says stocks have corrected into ‘deep value territory’ and won’t let benchmarks ‘hold our strategies hostage’

ARK Invest founder Cathie Wood offered the latest defense of the once-highflying, disruptive innovation strategies that had made her suite of exchange-traded funds among the most popular, and best-performing, on Wall Street in 2020.

In a Friday evening blog post, Wood said that despite a brutal stretch that has compelled the operators of the ARK Invest ETFs, including the flagship Ark Innovation
fund, to do some soul-searching, the fund manager is sticking to her game plan.

“‘With a five-year investment time horizon, our forecasts for these platforms suggest that our strategies today could deliver a 30-40% compound annual rate of return during the next five years.’”

— Cathie Wood, ARK Invest founder and CEO, in a Friday blog post

“We won’t let benchmarks and tracking errors hold our strategies hostage to the existing world order,” Wood wrote. She described the success of the ARK ETFs as one not solely bolstered by fervor for “stay at home” investment opportunities, amid the COVID pandemic, but rooted in identifying paradigm-shifting innovation, from blockchain and bitcoin
to electric vehicles.

“Critical to investment success will be moving to the right side of change, avoiding industries and companies caught in the crosshairs of ‘creative destruction’ and embracing those on the leading edge of ‘disruptive innovation,’” Wood wrote.

On Friday, ARK Innovation ended the session up nearly 6% and produced its second straight sharp weekly gain, up 1.1%, following a 1.8% advance in the prior week. The advance for ARK Innovation still leaves the…


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