Ark Invest has focused on investing in innovative technologies, and the hedge fund believes it will pay off in the long run.
Cathie Woods, the CEO of hedge fund Ark Invest, is confident that the company will record spectacular results in five years.
Ark Invest is known for investing in innovative technologies such as blockchain, artificial intelligence, machine learning and more.
Over the past few years, Ark Invest has invested in numerous cryptocurrency projects. She told CNBC’s “Capital Connection” that she is bullish about the hedge fund’s long-term performance. Woods said;
“Given our expectations for growth in these new technologies, I think we’re going to see some spectacular returns. We’ve been in a terrible bear market for innovation. However, if you look from the bottom of the coronavirus to that peak [of the Ark Innovation ETF] in February of ’21, we were up 358%.”
Ark Invest is currently bearish as the company is caught in the middle of the ongoing massive sell-off within the tech sector. Tech stocks are experiencing a massive sell-off while the cryptocurrency space has been in a bearish trend for the past five months.
Despite the ongoing bearish run, Woods revealed that her firm had recorded an increased inflow of funds since January. She said;
“I think a lot of our investor base is averaging down. You’d be amazed if you average down over time how quickly a strategy can come back above that average. And if we’re right, significantly above that average over the next five years.”
Woods added that Ark Invest continues to invest despite the current market situation as it believes this is the perfect time to buy more shares.
The Ark Invest CEO said there are several things wrong with the world at the moment and innovation is the answer to it all. She said;
“If you compare what’s going on in the public equity markets to the private equity markets, when it comes to innovation, we’ve seen a 60% drawdown in the last year. The private markets have seen a 20% increase … as we have analyzed it through Crunchbase.”
The total cryptocurrency market cap is around $1.7 trillion as Bitcoin, and other leading coins continue to struggle.
