Cathie Wood, CEO and founder of ARK Invest.
CNBC
Large-cap investor Cathie Wood is on the verge of recovering some of its recent losses as technology stocks rebounded on Tuesday after a sharp correction triggered by rising bond yields.
Wood’s flagship asset, traded on the Ark Innovation ETF (ARKK), rose 4.8% in premarket trading on Tuesday. Tesla, the fund’s largest stake, rose 5.2% in early trading. Among other holdings, Zoom Video gained 4.2%, while Palantir gained 3.7%.
Another large Invitae stake rose 10% in premarket trading on Tuesday. She told CNBC on Monday that the company, which operates in the molecular diagnostics space, is one of the company’s most underrated holdings.
The return from “ARKK” came amid a 2% jump in the Nasdaq 100 futures as bond yields stabilized. Nasdaq Composite fell 2.4% on Monday, down the correction range, or more than 10% from its last high.
Wood, which focuses on innovative technology, has seen that actions that fit its strategy have been hit recently amid a large market rotation in high-flying technology and cyclical stocks in the face of higher rates. The fund lost 5.8% on Monday alone, bringing its losses in 2021 to 11%.
High-growth names are particularly affected, as rising rates make their future profits less valuable today, making high stock values less justified. Many of its high stakes have suffered heavy losses in the last month: Tesla has lost 33%, Zoom Video has lost 27%, Palantir has fallen 41%.
The founder and CEO of Ark Investment Management said on 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 a fundamental sense, the bull market is consolidating and this will play to our long-term benefit,” Wood told CNBC’s Closing Bell on Monday.
“We have great opportunities” for sale to buy the names of pure pieces from the funds, Wood added.
Wood gained a large number of viewers on Wall Street after a banner in 2020 that saw its flagship fund return by almost 150% as the pandemic accelerated innovation trends. The fund’s managed assets rose to more than $ 17 billion.
– CNG’s Maggie Fitzgerald contributed to the reporting.