Cathie Wooden, CEO of Ark Funding Administration, sometimes focuses on small- and mid-cap know-how shares. However she often ventures into megacap progress shares.
This technique, which probably goals so as to add stability to the Ark funds, is what Wooden adopted up to now week as she purchased shares of a megacap tech title.
As of Nov. 21, Wooden’s flagship Ark Innovation ETF (ARKK) is up about 27.32% 12 months so far, outpacing the S&P 500’s achieve of 12.26%. However the ETF continues to be down 17% from what it was a month in the past, primarily weighed down by the stress within the broader tech market.
Wooden gained a repute after the Ark Innovation ETF delivered a 153% return in 2020. Her type brings large wins in a rising market but additionally painful losses, as seen in 2022, when the fund misplaced greater than 60%.
These swings have weighed on her long-term outcomes. As of Nov. 21, the Ark Innovation ETF has delivered a five-year annualized return of -6.45%, whereas the S&P 500 has an annualized return of 14.85% over the identical interval, in line with knowledge from Morningstar.
Within the 12 months by means of Nov. 20, the Ark Innovation ETF noticed roughly $1.3 billion in web outflows, in line with ETF analysis agency VettaFi.
Picture supply: Fallon/AFP through Getty Photos
Cathie Wooden’s funding technique defined
Wooden’s funding technique is simple: Her Ark ETFs sometimes goal rising high-tech firms in fields akin to synthetic intelligence, blockchain, biomedical know-how, and robotics.
In Wooden’s view, these firms might reshape the world and drive robust long-term progress, but their volatility results in large fluctuations within the values of Ark funds.
Associated: Cathie Wooden’s web price: The Ark Make investments CEO’s wealth & earnings
Over the ten years ending in 2024, the Ark Innovation ETF worn out $7 billion in investor wealth, in line with an evaluation by Morningstar’s analyst Amy Arnott. That made it the third-biggest wealth destroyer amongst mutual funds and ETFs in Arnott’s rating.
In October, Wooden mentioned in a CNBC interview that she expects to see a market “shudder” as rates of interest start to rise.
Nonetheless, Wooden believes within the potential of AI, denying the notion of AI bubbles amid issues in regards to the excessive valuations of tech shares.
“I do not believe AI is in a bubble,” Wooden mentioned. “ What I do think is, on the enterprise side, it is going to take a while for large corporations to prepare themselves to transform…in order to really capitalize on the productivity gains that we think are going to be unleashed by AI.”
However not all buyers share that optimism. Within the 12 months by means of Nov. 20, the Ark Innovation ETF noticed roughly $1.3 billion in web outflows, in line with ETF analysis agency VettaFi.
Cathie Wooden buys $16.7 million of Nvidia inventory
On Nov. 20, Wooden’s Ark Innovation ETF purchased 93,374 shares of Nvidia (NVDA), valued at roughly $16.7 million. On the day of buy, Nvidia inventory sank 3.15%.
That is Wooden’s first Nvidia buy within the fourth quarter. She added roughly 153,000 shares in Q3 and 659,000 shares in Q2, following a small sale of roughly 13,700 shares in Q1, in line with Stockcircle’s knowledge.
Nvidia just isn’t within the prime 10 holdings of the Ark Innovation ETF.
High 10 holdings of the Ark Innovation ETF as of November 21, 2025:
- Tesla Inc. (TSLA), 12.44%
- Roku Inc. (ROKU), 5.65%
- CRISPR Therapeutics AG (CRSP), 5.27%
- Coinbase International Class A (COIN), 5.20%
- Tempus AI Inc. (TEM), 5.10%
- Shopify Class A (SHOP), 4.99%
- Robinhood Markets Class A (HOOD), 4.17%
- Roblox Corp Class A (RBLX), 4.12%
- Palantir Applied sciences Class A (PLTR), 4.10%
- Superior Micro Units (AMD), 3.83%
On Nov. 19, Nvidia posted fiscal third-quarter outcomes that topped Wall Road forecasts on each earnings and income, and issued gross sales steerage for the fourth quarter that additionally got here in forward of expectations.
The corporate reported adjusted earnings of $1.30 per share, up 65% from a 12 months earlier, versus the $1.25 that analysts had anticipated. Income reached $57.01 billion in contrast with the $54.92 billion estimate.
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Nvidia has turn into essentially the most beneficial publicly traded firm amid the AI increase. Its key purchasers embrace tech megacaps like Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), and Meta Platforms (META). All of these firms are aggressively investing in AI infrastructure, which requires Nvidia’s AI chips.
Like Wooden, Nvidia CEO Jensen Huang rejected the concept of the AI bubbles.
“There’s been a lot of talk about an AI bubble. From our vantage point, we see something very different,” Huang mentioned throughout an earnings name.
Huang mentioned three large shifts are taking place: computing is transferring from CPUs to GPU-accelerated programs as Moore’s Legislation slows; AI has reached a tipping level and is reshaping purposes; and a brand new wave of “agentic AI systems” is rising that may cause, plan, and use instruments.
“As you consider infrastructure investments, consider these three fundamental dynamics,” Huang added. “Nvidia Corporation is chosen because our singular architecture enables all three transitions.”
Nvidia’s inventory is up 33% 12 months so far as of Nov. 21.
Associated: Analysts get extra bullish on this non-tech inventory
