By Paul R. La Monica, CNN Business
At a time when many investors are content to follow the crowd and buy top techs like Apple, Amazon and Microsoft, Cathie Wood is looking for the next big innovators in buzzy fields like robotics, fintech and space exploration.
It’s a high-flying, high-risk, high-reward tier of investing. And it’s put Wood’s fans on a white-knuckle ride in 2021.
Last year, Wood’s strategy paid huge dividends for investors in her flagship Ark Innovation exchange-traded fund. It surged nearly 150% in 2020 and helped turn her into a Wall Street superstar — sort of the Warren Buffett of momentum investing.
But this year hasn’t been nearly as kind to Wood as the last. The Innovation ETF was down 2.5% through late August, despite a red-hot market for tech with the Nasdaq up more than 18% so far in 2021.
Wood wasn’t available to comment for this story, but she doubled down in an interview with CNBC in August. She’s not worried that the Ark strategy of looking for new tech leaders will end badly, and she maintains that this current rally will not be a repeat of the epic 2000 dot-com implosion.
“I don’t think we’re in a bubble, which is what I think many bears think we are,” Wood told CNBC. “We have nothing like that right now. In fact, you see a lot of IPOs or SPACs coming out and falling to Earth. We couldn’t be further away from a bubble.”
How Wood developed her strategy
Wood speaks from experience. She’s no millennial or Gen Z investor for whom the 2000 tech...
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