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The Power of Cathie Woods’ Long-Term Perspective

Cathie Woods—the founder, CEO, and Chief Investment Officer of Ark Investment LLC—became something of a financial Rockstar in 2020. Her flagship portfolio, the Ark Innovation ETF (ARKK), has returned close to 50% in the last 12 months and has an annualized return of over 25% since its inception in November 2014. Much of this success has been attributed to the explosive growth of stocks in emerging or disruptive industries, affirming Woods’ foresight in key areas of growth and innovation over the last 6 years. These include an emphasis on autonomous vehicles, fintech disruptors like cryptocurrency, space exploration, and the advancement of genomics, all of which Ark has additional ETFs to capitalize on specifically. As you may expect, Ark’s innovation-focused investing strategy can require a great deal of conviction, and with that the resolve to prioritize a long-term outlook over daily price movements of stocks and quarterly results when making decisions. This may sound obvious, but it is a key aspect of markets that investors and company managers alike often struggle with.