Wooden says ARK Innovation fund should not be ‘enormous slice of any portfolio’

Cathie Wooden is defending her underperforming ARK Innovation exchange-traded fund following a rocky stretch.

“We’ve a unstable fund,” she advised CNBC’s “Squawk Field” on Friday. “We shouldn’t be an enormous slice of any portfolio. We’re extra of a satellite tv for pc technique now, though we expect that is the way in which the world goes.”

Shares of the know-how fund have misplaced practically two-thirds of their worth from their Covid-19 pandemic heyday, when market pleasure and the meme inventory craze drove shares to almost $160 and led the fund to greater than double in 2020, hovering 149%.

Since then, the fund has underperformed, fueling skepticism over the Ark Make investments CEO’s funding methods. Shares are up 2.8% this yr, far behind the S&P 500’s 24% achieve, and over the previous three years have misplaced about 23% yearly, in keeping with FactSet information.

Wooden acknowledged that a number of “attention-grabbing behaviors” through the pandemic despatched ARKK shares increased, however asserted that most of the applied sciences and analysis underpinning her agency’s investments are “rather more superior.”

She referred to as out the multiomics life sciences and health-care sectors as the largest drag on the fund. This could change as new genome remedy modifying corporations reminiscent of Intellia Therapeutics emerge as offering different disease-curing strategies.

“We predict we’re an excellent complement to the broad-based benchmarks on the market, as a result of we do not look something like them,” she mentioned of her fund. “And fact will win out.”