ARK’s portfolio is set to triple in the next five years, said the firm’s founder Cathie Wood. She also said that falling lumber and copper prices signal that the market is “beginning to see signs that the risks are overblown” from inflation.
“We know it’s been a difficult time in the market for innovation strategies,” she said. As a result, Wood has moved into what she called “opportunistic” investment plays such as special-purpose acquisition companies that have badly underperformed the benchmark S&P 500.
Wood, whose ARK Innovation ETF was the top-performing actively managed U.S. equity fund tracked by Morningstar last year, has seen her performance stagnate along with the slowdown in growth stocks. Her flagship fund is down nearly 28% from its early February high.