Cathie Wood, CEO of Ark Invest, which draws attention with its investments in innovation and has caused a lot of damage to its investors recently, spoke to CNBC.
Continuing to defend the company’s innovation-oriented portfolios, Wood said that he expects great returns in 5 years.
Some of the funds Wood manages had a 50% loss in the last 12 months, raising questions.
“We are in a terrible bear market”
“A terrible we are in a bear market”, the CEO said, adding that his expectations have not changed.
“We are in a terrible bear market for innovation. However, when we look at our peak in February from the bottom after Covid, we see that we have increased by 358%. Given our growth prospects in these new technologies, I think we will see some spectacular returns in the next 5 years.
We have received significant inflows (about $1 billion) since Jan 17. I think most of our investor base is lowering their average cost.
If you lower the average with a strategy and over time, you will be surprised how quickly the price rises above your average. If we are right, we expect pricing well above the cost of investors in 5 years.”
Stating that they will not give up on innovation, Wood said that the world is facing all kinds of problems right now and this can only be overcome with innovation.
Wood previously revealed that he has a target price of $500,000 for Bitcoin.
Some of Ark Invest’s loss-making ETFs indirectly bitcoin also has exposure.
Among the important ETFs of the company, there are important companies such as Tesla and Block that invest in Bitcoin, as well as the shares of Coinbase, the largest stock exchange in the USA.
Via company ETFs Grayscale Bitcoin Trust invests in the fund.