(Bloomberg) — Cathie Wood said she’s running a “deep-value” portfolio of technology stocks that are undervalued relative to their potential.
“It’s risk-off because of inflation, interest rates,” pushing investors to the relative safety of benchmark index companies, the head of Ark Investment Management said in an interview on CNBC Thursday. “If we’re right and the disruptive innovation that is evolving is going to disintermediate, disrupt the traditional world order, those benchmarks are where the risk is, not our portfolios.”
Ark’s funds have dropped as investors prepare for the Federal Reserve to raise interest rates. The flagship ARK Innovation ETF (ticker ARKK) peaked on Feb. 16, 2021, and has fallen 56% since then.
Wood defended some of her individual tech bets, saying Roblox Corp. is one of the best ways to play the metaverse, the virtual universe that blends digital technologies ranging from video-conferencing to gaming, cryptocurrencies to virtual reality. She also said Roku Inc. will become “an advertiser of choice” and some advertising dollars will migrate from Facebook to Roku.
When asked why she sold shares of Twitter Inc. before the company reported earnings, Wood said her firm concentrates holdings toward its highest conviction names during down drafts and she doesn’t consider Twitter one of those names for the flagship fund. She added the firm’s confidence in the company “was nicked a bit as we saw some of the censorship issues and controversies” arising again.
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