October 2021 was a record month for Bitcoin investors, with 40% gains and the first monthly close over $60,000. This is no surprise to investors like Cathie Wood, who has been bullish on Bitcoin and other disruptive technologies since 2013.
Cathie Wood started ARK Invest and related ETF funds to focus on disruptive sectors like cryptocurrency, AI, and robotics.
She stands out as a charismatic, sometimes controversial influencer in the financial landscape. Many investors are curious about who is Cathie Wood? Let's take a look at the Cathie Wood portfolio 2021 and the woman behind the fund.
Who Is Cathie Wood?
Cathie Wood was born in 1955 in Los Angeles. She studied at USC, earning her BS in Economics and Finance in 1981 when she graduated Summa Cum Laude.
Her professional career started in 1977 as an assistant economist for Capital Group. After that, she was a managing director for Jennison Associates.
Her career included a stint as a limited partner of Tupelo Capital Services. Later, Cathie Wood's trading experience continued as Chief Investment Officer of AllianceBernstein, where she managed over $5 billion in assets.
In 2013 she wanted to create an exchange-traded fund (ETF) based on companies in the disruptive tech sector. The management team at AllianceBernstein balked, citing unacceptable risk factors.
Cathie Wood felt so strongly about her new direction that she left AllianceBernstein and founded ARK Investment Management, LLC (ARK Invest) in 2014. She invested $5 million of her funds into the new venture.
Cathie Wood's Outlook
Like many strong leaders, Cathie Wood's rise has not been without controversy. She is a staunch Christian. Her reading of the One Year Bible inspired her to name her fund ARK for the Ark of the covenant.
She also supported Donald Trump's 2020 re-election bid. She said this was not an emotional decision. Her support stems from her belief that the Trump administration's economic policies of lower taxes and regulations are more favorable to innovation.
She is a fan of Elon Musk, who is also a controversial figure at times.
Cathie Wood believes Tesla is one of the key companies for future growth. ARK Invest's investment in Tesla is the fund's largest single stake.
She believes that concerns about cryptocurrency energy use are misguided. She says the growth of the blockchain will be a principal driver that spurs investment and adoption in solar and renewable energy.
Cathie is also a growing influencer online, especially with the Reddit community. She publishes Ark's research for free and is active on social media. She has even inspired a line of merchandise featuring the tickers of her firm's ETFs.
Cathie Wood currently manages six actively traded exchange-traded funds (ETFs). Each fund focuses on long-term growth in companies working with disruptive technologies.
Cathie Wood Portfolio 2021
Cathie Wood manages ARK Invest's portfolio of over $53.7 billion in assets. Stocks are concentrated in genomics, blockchain, artificial intelligence, fintech, and electric vehicles.
She is betting big on Tesla, Bitcoin, Ether, and the cryptocurrency space. Her firm's funds have a significant stake in one of the biggest cryptocurrency exchanges in the world, Coinbase Global (NASDAQ:COIN).
Currently, ARK Invest top 10 stocks break down as follows:
Tesla Inc -12.6% Automobile manufacturing, electric cars, battery technology
Teladoc Health Inc - 4.7% Telemedicine, HMO medical centers
Square Inc Class A - 3.9% Data processing, hosting, and related services
Shopify Inc Class A - 3.6% Software Publishers
Coinbase Global Inc Class A - 3.6% Cryptocurrency Exchange
Unity Software Inc - 3.4% Software Publishers
ROKU Inc Class A - 2.9% Cable and subscription programming
Spotify Technology S.A. - 2.8% Software Publishers
Twilio Inc Class A - 2.2% Software Publishers
Intellia Therapeutics Inc - 2.0% Pharmaceuticals Preparation Manufacturing
Cathie Wood Investment Strategies
Cathie Wood's Ark Invest focuses on new products and services that have the potential to change the way the world works. Disruptive technologies include DNA technology, fintech innovation, artificial intelligence, the IoT, robotics, and more.
Some of Cathie Wood's strategies include:
- Five-year focus: Cathie says she and her team review the five-year outlook on a daily basis.
- Research-based on themes: Fund analysts are organized according to innovation themes rather than sectors or geography. Within those themes, analysts are responsible for several different technologies.
- Collaboration and transparency: ARK Invest analysts work on their focus areas and share information across themes. Teams create work that is easily shared and augmented. They incorporate outside perspectives as well.
- Wright's Law: Manage the hype risk of new technologies by testing it against Wright's Law. Wright's Law says that costs should decline by a fixed percentage for every cumulative doubling in the number of units. For example, ARK Invest never owned solar directly because the costs were not falling fast enough.
- Include Diverse Viewpoints: Use diversity to stay ahead of the curve to spot new technologies. - ARK Invest holds weekly brainstorming sessions that include people from diverse industries and backgrounds. Venture capitalists, academics, entrepreneurs, and technologists attend. ARK Invest's clients also send them leads and tips about innovative technologies.
How to Invest Like Cathie Wood
Investors wanting to know more about Cathie Wood's Portfolio 2021 can study her ARK Invest fund philosophy and portfolio as a guide. Are you craving deeper insights as well? We can help you with that. You can follow her closely with this newly launched Spiking Insiders product.
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