Investing’s newest superstar is having a rough month
CNNNew York CNN Business — Cathie Wood of ARK Invest has become one of the top investment voices on Wall Street over the past few years, thanks to big bets on Tesla, Square, Roku and other momentum stocks. She wrote in a letter to shareholders at the end of December that “innovation is evolving at such a rapid pace that traditional equity and fixed income benchmarks are being populated increasingly by so-called value traps, stocks and bonds that are ‘cheap’ for a reason.” Wood added that investors need to avoid these traps by “avoiding industries and companies in the crosshairs of ‘creative destruction.’” Betting that the value rally may not last much longer CNN Business spoke to ARK Invest’s Ren Leggi about the firm’s big and bold stock bets. You can’t compare it to traditional car companies,” Leggi said, adding that Tesla’s growing clout with autonomous driving technology will lead to even more recurring revenue. He describes Wood’s and the rest of the firm’s strategy as looking for companies that are an industries where “it’s winner takes most.” That’s worked well with Tesla — but it will probably lead to even more big swings in the ARK returns going forward.
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