A renowned investor trained with a former advisor to American presidents, Cathie Wood bet everything on disruptive technologies when she founded the asset manager ARK Invest. From artificial intelligence (AI) to cryptocurrencies and electric cars, it has been able to detect industries that have become central in the long term. Focus on the journey of the CEO who stood out for her bold choices.
Cathie Wood: a Californian childhood followed by successful studies
Cathy Wood was born in 1955 in Los Angeles to Irish immigrant parents.. Having followed a traditional path in a Catholic high school for girls, she became interested in economics and finance and joined the University of Southern California to follow a course dedicated to these themes. In 1981, Cathy Wood graduated with honors.very honorable”.
During her studies, the future director of ARK Invest met the economist Arthur Laffer, himself advisor to several American presidents including Ronald Reagan and later Donald Trump. It is he who will get his foot in the door, with a first job in the finance sector.
In parallel with his studies, Cathie Wood therefore joined Capital Group in 1977, as an assistant economist.. She also moved to Jennison Associates in 1980, where she became analyst and chief economist. She will also become the general manager of this company.
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First jobs and developing his investment philosophy
In 1998, Cathie Wood co-founded her first company in New York: Tupelo Capital Management. This is a hedge fund that she will run alongside her colleague Lulu C. Wang.
In 2001, it was as chief information officer (CIO) of global strategies which she will join AllianceBernsteina major asset management firm. She stayed there for a total of 12 years, before founding her own management company.
During her career at AllianceBernstein, Cathie Wood will experience the major financial crisis of 2007-2008during which its management will be criticized: it will therefore perform less well than the rest of the market. This experience will mark her and will be one of the starting points for her exploration of alternative investment methods.
Creation of ARK Invest and focus on disruptive technologies
Cathie Wood stood out at this time for her ambitions: it wishes to invest in future technologies, adopting a deliberately riskier approach than its peers. This is also the reason for his departure from AllianceBernstein. Cathie Wood wanted to launch exchange-traded funds (ETFs) based on disruptive technologies. But her superiors considered her strategy too risky, which pushed her to create ARK Invest.
Since its beginnings, the asset manager ARK Invest, whose name refers to the Ark of the Covenant, has actively positioned itself on technologies that alone create a new potential market. We can cite, for example, artificial intelligence (AI), robotics or even blockchain: these are what we call “disruptive” technologies.
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It should be remembered that in 2014, AI and blockchain are sometimes considered niche industries, but ARK Invest wants to capitalize on these developments. The company therefore offers the first 4 ETFs which allow you to position yourself on stocks linked to these industries..
Checkered performance
Ark Invest ETFs are sometimes considered “rollercoasters», or roller coaster in French. For what ? Because from one year to the next they can be among the best ETFs as well as the worstwhich makes ARK Invest's performance difficult to judge.
In 2020, the ARKK ETF was the best performing equity fund in the world… But the worst performing in the first quarter of 2022. And the trend reversed again in 2023where the performance of this diversified ETF was praised by investors.
Developments in ARK Invest ETFs of course go hand in hand with the performance of the underlying markets. However, for cryptocurrencies as for others, these are more volatile. But it is an assumed choice on the part of Cathie Wood, who often emphasizes the importance of adaptability.
Cathie Wood and cryptocurrencies
Cathie Wood has distinguished herself over the years by becoming one of the most vocal defenders of the cryptocurrency sector, particularly Bitcoin.. In 2024, it claimed to have invested 25% of its assets in crypto assets, mainly Bitcoin (BTC).
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This attraction was reflected by the choices of ARK Invest: the company has positioned itself in the race for spot Bitcoin ETFs from 2021. His application was successful in 2024 and was followed by an application for an ETF for Ethereum's crypto ETH.
Cathie Wood is generally very bullish when it comes to cryptocurrencies. She thus affirmed in January 2024 that Bitcoin could reach 1.5 million dollars in 2030.
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Cathie Wood's investment philosophy
Cathie Wood's greatest legacy seems to be her bold approach to disruptive technologies. Far from the traditional approach which consists of investing the majority of one's portfolio in stable and proven technologies, she was able to define a new way of approaching the Tech sector.
This is based on two elements: on the one hand a belief in technology and in the future of projects that revolutionize entire sectors. On the other, a long-term vision : although few people believed in cryptocurrencies during their first years of existence, they have proven their interest for those who positioned themselves early.
Cathie Wood thus assumes the greater volatility of the investments offered by ARK Invest and considers that this is a risk measured in relation to the benefits that it can bring in the long term. A positioning which is also supported by research carried out by the company's analysts.
How rich is Cathie Wood?
Cathie Wood grew her fortune thanks to ARK Invest, which now manages more than 6.7 billion in assets. Forbes magazine cited her in 2021 in its list of the richest “self-made women” in the world. The following year, his fortune was estimated at more than $400 million.
It is difficult to find precise figures for his current fortunebut we know that 25% of its holdings are now in Bitcoin and that the cryptocurrency has surged since 2021, reaching new all-time highs.
Here is what Cathie Wood said about her fortune in January 2024:
“My financial fortune is made up almost entirely of innovation-related assets. […] My level of confidence in our research gives me the courage to be more aggressive in this area.»
Cathie Wood, a special place in the world of finance?
A rare female figure in the world of finance to benefit from a cult following among her fans, Cathie Wood occupies a special place. It is in particular its positioning very much in favor of disruptive technologies that has distinguished it from the rest.despite the turmoil experienced by ARK Invest ETFs.
This bet has so far paid off, making ARK Invest a company recognized and followed in its investments. As the cryptocurrency sector has exploded, it's a safe bet that his strategy will be imitated by other investors.
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Image: World Economic Forum via Flickr (CC BY-NC-SA 2.0)
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Investments in cryptocurrencies are risky. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your capacity to lose part of this savings. Do not invest if you are not prepared to lose all or part of your capital
Journalist at Cryptoast since 2017, I am passionate about the issues of decentralization, privacy and regulation. I specialize in traditional economics and finance by analyzing how news in this sector influences the cryptocurrency industry, providing a unique and informed perspective to Cryptoast readers.
Marine Debelloir
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