“I love this setup,” she said on CNBC’s “Closing Bell” Friday. “The worst thing that could have happened to us is for the market to narrowly focus only on our stocks – the innovation space. “
Amid the rotation out of high growth areas of the market, some of Wood’s strategies are now down more than 30% from their February high.
“From our perspective – five year horizon – nothing has changed except the price,” she said. In February, Wood expected a compound annual rate of return of 15% on her strategies, but after the recent price drop, she expects that number to reach between 25% and 30%.
While Wood sticks to her long-term bets, one name she sells is Apple. The fund is not allowed to hold cash, so dollars are instead stored in what Wood called “cash-like innovation stocks,” which includes Apple.
“The FAANG certainly meet these criteria – they act as defenders,” she said. “During a period of volatility as we have just seen, we will sell these stocks and we will move towards our more pure-play or older innovation companies which are suffering from risk reduction. “
Wood’s flagship fund Ark Innovation gained ground on Friday along with the broader tech sector, although the fund is still down more than 9% for the week.
Amid the weakness, around $ 760 million was withdrawn from the fund last week, according to FactSet data.
Yet despite the exits, Wood said the company has yet to see a month of buybacks.
Wood rose to fame in 2020 when his suite of exchange-traded funds – focused on areas such as the genomics revolution and robotics – far surpassed the market in general.
As his business grew in importance, his funds became very popular. Ark vehicle assets have grown from $ 10 billion to $ 80 billion in just 10 months.
“It’s parabolic. We’re used to exponential growth – that’s what we do. Our Ark strategies, our Ark innovation platforms that we believe will evolve exponentially, and therefore our capacity should evolve exponentially. 10 billion to 80 billion was a little faster than that, ”she said.
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