Cathie Wood: The ARK Invest Founder and Technology Advocate
Cathie Wood, founder and CEO of ARK Invest, has a keen eye for promising areas in technology, such as blockchain, cryptocurrencies, and other groundbreaking innovations. Renowned as a financial savant, Wood is admired for her strong appetite for risk-taking.
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Wood, the leading mind of ARK Invest, has often shared her belief that open-source blockchain and the decentralization of businesses are pushing aside the necessity for centralized bodies.
She further regards Bitcoin as the utmost tangible manifestation of accessible distributed ledgers and the bedrock of an autonomous digital monetary system. Wood perceives the value of Bitcoin as a secure store of wealth and predicts a significant surge in its price, particularly as people start losing faith in the current financial infrastructure.
About ARK Invest
Situated in Florida, ARK Invest presides over assets valued at a hefty $14.11 billion. These are spread across six active exchange-traded funds (ETFs), a couple of index ETFs, and numerous direct investments.
ARK Invest leans heavily into technology and science-focused investments. The company invests in stocks related to blockchain and cryptocurrency, artificial intelligence, robotics, genomics, and process automation.
Among ARK's myriad of cryptocurrency investments, shares of Coinbase command a unique place. In March 2023, the company reasserted its loyalty to the cryptocurrency exchange, snapping up an additional $8.6 million worth of Coinbase securities. However, the majority of its funds are earmarked for Tesla, a strategy for which Wood has frequently been criticized.
Wood's company was the trailblazer in championing Bitcoin investments through its exchange-traded fund, a move initiated back in 2015. ARK has remained a fervent proponent of cryptocurrency, frequently portraying digital currencies in its publications as an innovation with the potential to disrupt conventional payment services. According to a projection by ARK Invest, by 2030, the market capitalization of cryptocurrencies and digital wallets could hit an astronomical $50 trillion.
2020 proved to be a pivotal year for Wood when her company's main ETF yielded a whopping 150% return. However, ARK Invest struggled to maintain this momentum in 2021, with its annual profit falling short of the 20% mark.
2022 was a turbulent year for the company, witnessing a steep 67% drop in the value of its flagship ETF. While it managed to claw back 34% in 2023, it still languishes at a level 73% below its all-time high.
Despite the protracted bearish trend in 2022 that led to a 50% depreciation in ARK Invest's value on a yearly basis, it didn't deter the company from acquiring shares of Grayscale Bitcoin Trust to the tune of $1.5 million.
Catherine Wood: A Remarkable Journey
Cathie Wood was born in Los Angeles in 1955 to parents who had immigrated to the U.S. from Ireland. Her father, an engineer, had a significant influence on her, often discussing the potential and impacts of technology on society.
Following her time at an all-girls Catholic school, Cathie went on to excel in her studies at the University of Southern California, where she earned degrees in economics and finance.
During her college years, Cathie built a relationship with Arthur Laffer, an influential economist of the time. He was her professor and later played a crucial role in helping her land a position at Capital Group. She worked there for three years as an economist's assistant, later furthering her career at Jennison Associates.
In 1988, Wood established a hedge fund, Tupelo Capital Management, in New York. By 2001, she had joined AllianceBernstein, where she managed a portfolio worth over $5 billion. However, her innovative proposal for an Exchange Traded Fund (ETF) was considered too risky by her superiors, leading to her departure in 2014. Undeterred, Cathie founded her own company, ARK Invest.
Cathie has always had a keen eye for the potential of growing tech companies, preferring them over high-value issuers. Her approach, while seen as risky, is characterized by high volatility, something she's not afraid to tackle.
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