Published on 21 Jan 2022 on Insider Monkey via Yahoo Finance
15 Worst Stock Picks of Cathie Wood
In this article, we discuss the 15 worst stock picks of Cathie Wood. If you want to skip our detailed analysis of these stocks, go directly to the 5 Worst Stock Picks of Cathie Wood.
Cathie Wood, the chief ARK Investment Management, is often hailed as the champion of “disruptive innovation” at the stock market. In 2020, as the pandemic pummeled investors, her flagship ARK Innovation ETF (NYSE:ARKK) returned more than 152% and Wood was hailed for backing innovation with capital and making loads of money in the process. Wood had founded ARK in 2014, turning into one of the most successful hedge funds on Wall Street before the decade was over. At the end of September 2021, ARK had a portfolio value of over $41 billion.
However, the past few years have also been characterized by soaring valuations and larger appetites for riskier money management. As inflation has increased, the share prices of companies that operate in high growth sectors have dropped drastically. Wood, whose fund is primarily invested in these firms, has not altered strategy, instead doubling down on bets on high growth areas and picking shares at a discounted price. After the highs of 2020, her flagship fund dropped 24% in 2021. In the first few weeks of 2022, it is down a staggering 20%.