ARK Invest’s Cathie Wood is positioning a White House administration to embrace transformative technology. The company’s CEO and chief investment officer believes reduced regulations will spark a boom no matter who wins the presidential election. “The two candidates are sounding more and more alike,” Wood said Tuesday on CNBC’s “Fast Money.” “This appears to be a bipartisan issue.” Wood runs the firm’s flagship ARK Innovation ETF (ARKK), which has gained nearly 22% in the past three months. But it’s been a disappointing year so far for the fund. After soaring nearly 68% last year, the ARK Innovation ETF is down about 8% in 2024. There has also been a sharp decline since President Joe Biden took office. In 2022, the same year the Federal Reserve began raising interest rates, ARKK fell about 67%. Technology companies, such as those held by ARKK, are particularly sensitive to rising interest rates. “Many people associate our portfolios with low interest rates. Certainly algorithmic trading seems to do that,” Wood said. “I think that’s going to change.” The ETF’s current heavy holding is Tesla. The stock is almost flat this year after surging about 102% in 2023. Wood believes the poor performance is temporary. “This is not a car stock. And certainly not a traditional stock. This is a robotics stock. So, self-driving cars are robots. They’re going to be electric and powered by artificial intelligence,” she said. “This story is just beginning.” Wood is also an investor in the ARK Genomic Revolution ETF (ARKG), which is down about 25% so far this year. But the main strategy she insists on is that artificial intelligence in health care will usher in a new era. “CRISPR Therapeutics (and) Beam Therapeutics and other companies have developed treatments for diseases,” Wood said. “When we get people out of the hospital and into treatment, we’re going to see real results.” CRISPR has gained 11% over the past month, while Beam has gained 2% during the period. The ARK Genomic Revolution ETF holds both stocks.
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