Cathie Wood sold $22.3 million of surging tech stock

Cathie Wood, the well-known fund manager of Ark Invest, frequently takes advantage of stock surges to secure profits.

This week was no exception. She just sold a major tech stock.

Cathie Wood’s investment style has sparked a divide between her supporters and critics.

Proponents see her as a trailblazer, applauding her bold investments in cutting-edge sectors like artificial intelligence and renewable energy. They argue that her forward-looking strategy positions her to capture the growth of transformative trends, setting her apart as a visionary in finance.

Critics, however, claim her performance doesn’t match the hype. They argue that her aggressive bets, while impressive in short bursts, lack consistent long-term results.

While her bold moves delivered a remarkable 153% return in 2020, they point to recent underperformance as evidence that she is more of a risk-taker than a reliable money manager.

Her flagship Ark Innovation ETF (ARKK) , with $5.8 billion in assets, is down over 9% in 2024, with a three-year return of negative 26% and only 3% over five years.

That pales in comparison to the S&P 500. The index posted positive annualized returns of nearly 39% for one year, 10% for three years, and 16% for five years.

Despite these results, Wood remains a prominent figure in finance, buoyed by her frequent media appearances and a loyal fan base that affectionately refers to her as "Mama Cathie."

What’s Cathie Wood’s investment strategy?

Cathie Wood focuses on disruptive innovation and investing in high-growth tech sectors like artificial intelligence, genomics, and blockchain. Her strategy emphasizes long-term potential that she believes will be transformative.

However, these high-growth stocks are highly volatile, leading to frequent fluctuations in Ark funds' values.

Investment research firm Morningstar has been critical of Wood and her flagship Ark Innovation ETF.