Cathie Wood Net Worth, Bio, Background, Controversies

Cathie Wood on Twitter.
Courtesy of Cathie Wood’s Twitter profile.

 

Who Is Cathie Wood?

Cathie Wood (Catherine Duddy Wood) is an American investor and founder & CEO of the ARK Invest investment management company. According to her profile on the ARK Invest website, Wood has managed over $5 billion at AllianceBernstein and approximately $800 million at Tupelo Capital Management prior to the founding of ARK.

Wood’s company is focused on investing in innovative companies and technologies. Over the years, she has often been criticized for her risky investment decisions, but has also grown a legion of impassioned followers.

 

Bio And Background

Cathie Wood’s LinkedIn profile states that she graduated from the University of Southern California in 1981 with a Bachelor of Science in Economics and Finance, Summa Cum Laude.

From 1977 to 1980, Wood worked as Assistant Economist at Capital Group. Between 1980 and 1998, she worked as a Managing Director at Jennison Associates. She was a Limited Partner of Tupelo Capital Services from 1998 to 2001. From 2001 to 2013, the served as Chief Investment Officer at AllianceBernstein.

Barron’s writes that Wood’s portfolio performed well in the early 2000s’ bull market but fell harder than the market during the 2008-09 financial crisis. Barron’s adds that her volatile portfolios have repelled some institutions.

After leaving AllianceBernstein in 2013, Wood founded private investment management firm ARK Investment Management, LLC (ARK Invest) in 2014.

According to an October 2020 Forbes article, Wood’s decision to leave AllianceBernstein  (when she was 57) and start her own fund was the biggest risk of her career. The idea of an investment fund first came to her in 2012. At the time, her three children – aged 15, 19, and 21 – were away.

I realized I was alone for the next two weeks, which had never happened to me before. As soon as I was thinking that, this idea came to me. I wasn’t even thinking about work, but I thought, ‘You’ve been a student of disruptive innovation all this time. Why don’t you take those learnings and disrupt the financial sector in some way?’

Forbes adds that Wood left AllianceBernstein to fund ARK Invest after her idea of actively managed exchange-traded funds (ETFs) wasn’t met with much enthusiasm at the company. ARK Invest broke even in three years, with Wood investing over $5 million of her savings in the company.

Most people thought I was nuts because active management was dead. A close friend of mine called it a vanity project.… That threw me, but it also made me even more determined to prove him wrong.

According to Forbes, ARK was one of the fastest-growing and top-performing investment firms in the world, with $29 billion in assets under management (AUM) in October 2020.

According to ARK Invest’s website, the firm crossed $5 billion in AUM in June 2018 and $10 billion in July 2019. According to PR Newswire, ARK Invest held $58.2 billion in AUM as of December 31, 2020.

Investor’s Business Daily calls Wood a Tesla “bull” since the company’s early days. In February 2018, CNBC reported that Wood had predicted that Tesla stock would eventually go to $4,000 (a 1,100% increase relative to its value at the time). In May 2019, Wood told CNBC that she believed Tesla stock would exceed $4,000 in five years, even though it was down 29% at the time.

In April 2020, Institutional Investors wrote that ARK projected a Tesla share price of $6,800 by 2024.

In January 2021, Benzinga reported that Tesla stock hit Wood’s $4,000 price target, considering Tesla’s five-to-one split and that its shares had topped $800 earlier. CNBC’s Jim Cramer also said:

Back before the stock’s five-for-one split, Wood loved to say that Tesla was going to $4,000—post split, that’s $800. Wall Street scoffed. … But guess what? Today Tesla closed at $846, so who’s crazy now? It’s not just a couple big bets. Cathie Wood has a stunning overall track record.

In May 2021, Wood told Bloomberg Technology that she believes Bitcoin will hit $500,000.

 

Cathie Wood’s ARK Investment Management

ARK Invest's homepage.
Courtesy of ARK-Invest.com.

 

Cathie Wood’s ARK Investment Management – better known as ARK Invest – is an investment management firm focused on ETFs, or exchange-traded funds. ARK’s website homepage reads:

Today, we identify more innovation platforms than ever before. Over time, innovation should displace industry incumbents, increase efficiencies, and gain majority market share. It is up to investors to understand the opportunities and invest at the pace of innovation.

ARK innovation ETFs are for investors who are passionate about the future, believing that innovation is key to growth.

ARK’s investment activities are led by what the company calls “disruptive innovation.” According to the company’s website, “disruptive innovation” is centered around artificial intelligence, autonomous vehicles, fintech, DNA sequencing, robotics, and 3D printing.

ARK Invest ETFs are listed on the ARK-Funds website. ARK’s ETF holdings include Tesla, Teladoc Health, ROKU, Square Inc, Shopify, Lockheed Martin, Boeing, PayPal, Pinterest, Zoom Video Communications, Twitter, Grayscale Bitcoin Trust (owned by Barry Silbert), and Coinbase.

 

What Stocks Does Cathie Wood Own? Cathie Wood Portfolio

According to CheaperThanGuru – a website that tracks investments through SEC (Securities and Exchange Commission) data – the total portfolio value of Cathie Wood exceeded $40 billion in early June 2021. Her stock holdings included Tesla, Square Inc, Shopify, Zoom Video Communications, Teladoc Health, and others.

Wood's investment portfolio.
Courtesy of CheaperThanGuru.com.

 

Cathie Wood Net Worth

According to Forbes, Cathie Wood’s net worth was approximately $250 million as of October 2020. This made Wood the 80th richest female entrepreneur in the United States.

 

Online Presence And Publicity

Cathie Wood is present on Twitter and LinkedIn. ARK Invest has a YouTube channel as well.

Wood has been featured by major online publications on a number of occasions, including Forbes, CNBC, Fortune, Yahoo Finance, and Bloomberg.

In December 2020, Wood shared her investment vision with investment bank and financial service provider Goldman Sachs.

 

 

 

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