Cathie Wood from Ark Invest has lost $260 million this year
The charismatic CEO of investment holding Ark Invest, Catherine Wood, was heavily affected by the fall of the cryptocurrency market in 2022.
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Just 6 months ago, she was included in the Forbes list of the 100 richest self-made women with a fortune of $ 400 million, and today she has lost not only her place in this prestigious ranking but almost 70% of her capital.
Now Cathie is holding $140 million. It is an infinite $75 million less than her closest competitor, a 69-year-old founder of The Bakery Cos, Cordia Harrington, has and who closes the top 100.
Cathie Wood is one of the main “bitcoin messiahs” of 2021. She expects a $1 million price per BTC in 8 years, publicly supports El Salvador’s adoption of bitcoin as legal tender, and is a regular guest at major blockchain summits.
Now she may share the same fate as another visionary, CEO of MicroStrategy, Michael Saylor. While he’s enduring billions in unrealized losses on his bitcoin investments, he has become the meme and the target of anti-cryptocurrency lobbies (like Peter Schiff).
At the end of March, Morningstar downgraded the Ark Innovation ETF from neutral to negative due to “poor risk management”, high portfolio concentration, and an overly intuitive approach to asset selection.
Cathie Wood’s diversification is quite aggressive: her funds are distributed in just three directions, two of which are investments in her fund, as well as direct spot purchases of cryptocurrencies. Among traditional assets, she prefers real estate.
Today the margin of safety for Cathie Wood’s ETF fund is, paradoxically, built by investors who are in a drawdown after a failed entry into the market at the end of 2021. According to Forbes, they give the company time and credibility to get their money back. At the same time, it’s not a question of profit yet.
Well, if bitcoin reached the bottom of this cycle, then a return to the December levels ($46,000-$47,000) would be enough for Ark Invest to become market heroes again and at least stop being unprofitable. And such a task does not seem supernatural at all.
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