Cathie Wood, CEO and founder of ARK Invest.
CNBC
Widely followed investor Cathie Wood is on the verge of recovering some of its recent strong losses as technology stocks rebounded on Tuesday after a brutal correction caused by rising bond yields.
Wood’s stock exchange-traded fund, Ark Innovation ETF (ARKK), rose 4.8% on Tuesday. Tesla, the fund’s largest stake, rose 5.2% in early operations. Among other holdings, Zoom Video gained 4.2%, while Palantir gained 3.7%.
Another major stake of invited companies increases 10% on Tuesday in pre-market trading. He told CNBC on Monday that the company, which operates in the molecular diagnostic space, is one of the firm’s least-valued stakes.
The rise in ‘ARKK’ occurred amid a 2% jump in the futures of the Nasdaq 100 as bond yields stabilized. The Nasdaq Composite fell 2.4% on Monday, falling into correction territory, or more than 10% from its recent high.
Wood, which focuses on innovative technology, has seen how actions that fit its strategy have been marked lately amid a large market rotation from high-level technology and to value stocks cyclical in the face of higher rates. The fund lost 5.8% on Monday alone and raised its 2021 losses to 11%.
High-growth names are especially affected, as rising rates make their future profits less valuable today, making high stock valuations less justified. Many of its large holdings have experienced heavy losses over the past month: Tesla has lost 33%, Zoom Video has lost 27% and Palantir has fallen 41%.
The founder and CEO of Ark Investment Management said Monday that she is not worried about the recent drop in her funds and believes that over time her disruptive strategy will bear fruit.
“Right now the market is expanding and we believe that, in an underlying sense, the bullish market is strengthening and that will serve our long-term profit,” Wood said Monday on Closing Bell CNBC.
“We’re having great opportunities” in the sale to buy the pure gambling names from the funds, Wood added.
Wood gained numerous followers on Wall Street after a 2020 banner that saw its flagship fund return nearly 150% as the pandemic accelerated innovation trends. The fund’s managed assets have risen to more than $ 17 billion.
– CNG’s Maggie Fitzgerald contributed the notification.