Cathie Wood rose to fame as a “star investor” during the massive tech rally of 2020. Her flagship fund, Ark Innovation, delivered a staggering 153% return that year, capturing the attention of investors and analysts alike. However, the glow dimmed over the next two years as the fund experienced declines of 23% and 67% respectively. Morningstar, a leading analysis firm, even went so far as to label Ark Invest as one of the “decade’s worst value destroyers,” criticizing Wood’s risk management practices.
Despite these setbacks, Cathie Wood remained undeterred and in late January 2023, she launched a new fund specifically tailored for Swedish retail investors – Avanza Disruptive Innovation by Ark Invest. The fund’s stated objective was to identify early-stage innovative companies that are reshaping industries and societies at their core.
Prior to the US election, the fund had underperformed a global index but was in line with the performance of the Stockholm Stock Exchange. However, since November 4th, the fund’s returns have surged to 51%, significantly outperforming the index. This remarkable turnaround can be attributed in part to what is known as the “Trump trade.” Wood’s top holdings, such as Tesla and Palantir, have seen gains of around 20-30% post-election, while Coinbase, the third-largest holding, has soared nearly 50% in the wake of the cryptocurrency frenzy.
Avanza Disruptive Innovation by Ark Invest now boasts over 25,000 investors on the Avanza platform, signaling a growing interest in disruptive and innovative investment opportunities among Swedish retail investors.
Cathie Wood’s ability to navigate volatile markets and identify transformative companies has once again captured the spotlight, showcasing her resilience and expertise in the ever-evolving world of investing. As she continues to steer her funds towards success, the investment community eagerly anticipates what the future holds for this pioneering investor and her innovative approach to wealth creation.