Cathie Wood: some answers for jittery Ark investors
To be considered for the Disruptive Innovation Fund, stocks must have the potential to double in value every five years. But given the losses of the past year, one investor noted that returns would now need to quadruple in the next four years to meet that target. Did Wood think that was still possible?
“We do believe that, and in fact our return expectations are north of that,” Wood told investors on a recent webinar, hosted by Nikko Asset Management, through which Kiwi retail investors can access the Florida-based Ark via a PIE fund.
At its peak, units in the Disruptive Innovation Fund were trading at US$159.70. Today the price is US$60.23.
Wood says the haemorrhaging of investors and funds which began in February 2021 was sparked by “inflation and interest rate fears” – fears she believes were “misplaced”. In fact, the war in Ukraine and a boost in food and energy prices had dramatically heighted the risk of recession. Inflation would come in on the low side of expectations, she said.
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