Cathie Wooden, chief of Ark Funding Administration, doesn’t quit on her favourite shares simply.
That’s what she simply did, shopping for one among her prime holdings that’s down 15% year-to-date.
Wooden gained a repute after the flagship Ark Innovation ETF (ARKK) delivered a 153% return in 2020. Final 12 months, the fund gained 35.5%, far outpacing the S&P 500’s return of 17.9% in the identical interval.
However her type additionally brings painful losses in bearish markets, as seen in 2022, when the Ark Innovation ETF tumbled greater than 60%.
As of March 13, the Ark Innovation ETF was down practically 10% 12 months up to now, whereas the S&P 500 dropped 3%, Yahoo Finance information exhibits.
These swings have weighed on Wooden’s long-term beneficial properties. The Ark Innovation ETF has delivered a five-year annualized return of -11% as of writing, whereas the S&P 500 has an annualized return of 12.6% over the identical interval, in accordance with information from Morningstar.
Within the 12 months by March 12, the Ark Innovation ETF noticed roughly $1.45 billion in internet outflows.
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Cathie Wooden repeatedly rejects “AI bubble”
Wooden focuses on high-tech corporations throughout synthetic intelligence, blockchain, biomedical expertise, and robotics. She thinks these companies have nice progress potential, although their volatility usually brings fluctuations to the Ark’s funds.
From 2014 to 2024, the Ark Innovation ETF worn out $7 billion in investor wealth, in accordance 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. The analyst hasn’t up to date the 2025 rating.
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In a letter revealed in January, Wooden says the U.S. economic system is storing up power for a pointy rebound in 2026.
“Despite sustained real gross domestic product growth during the past three years, the underlying US economy has suffered a rolling recession and has evolved into a coiled spring that could bounce back powerfully during the next few years,” Wooden wrote.
Wooden additionally rejects the “AI bubble” discuss once more, saying it “is years away” and “the most powerful capital spending cycle in history” is coming.
“What once was the cap in spending seems to have become a floor now that the AI, robotics, energy storage, blockchain technology, and multiomics sequencing platforms are ready for prime time,” she mentioned.
Not all buyers agree with Wooden’s optimism. Within the 12 months by March 12, the Ark Innovation ETF noticed roughly $1.45 billion in internet outflows, in accordance with ETF analysis agency VettaFi.
Cathie Wooden buys $2 million of Tempus AI inventory
On March 11 and 12, Wooden’s Ark Genomic Revolution ETF (ARKG) purchased a complete of 41,906 shares of Tempus AI Inc. (TEM), valued at about $2.1 million, in accordance with Ark’s each day commerce data.
As of March 13, Tempus AI is the second-largest holding in ARKG and the fourth-largest in ARKK, accounting for roughly 9.5% and 5%, respectively.
High 10 holdings of the Ark Innovation ETF as of March 13, 2026:
- Tesla (TSLA) 10.57%
- CRISPR Therapeutics (CRSP) 6.07%
- Circle Web Group (CRCL) 5.03%
- Tempus AI (TEM) 5.02%
- Shopify (SHOP) 4.88%
- Coinbase World (COIN) 4.67%
- Robinhood Markets (HOOD) 4.49%
- Roku (ROKU) 4.06%
- Superior Micro Gadgets (AMD) 3.82%
- Palantir Applied sciences (PLTR) 3.59%
Tempus AI is a healthcare expertise firm that gives AI-driven diagnostic instruments that assist medical doctors make remedy selections. It additionally sells the info generated from its assessments to pharmaceutical corporations for drug improvement.
The corporate went public in June 2024, and Wooden had actively purchased its inventory for the reason that IPO.
Tempus AI inventory peaked close to $104 in October and now trades round $50 per share, down greater than 50% from its all time excessive.
The corporate reported its newest earnings on Feb. 24, however the market response was damaging. Tempus AI shares fell about 7% the day after the earnings report.
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For the fourth quarter, Tempus AI reported a lack of 4 cents per share, narrower than the 5-cent loss anticipated by analysts. Income reached $367.2 million, beating the $363.4 million consensus estimate and rising 83% 12 months over 12 months.
Nevertheless, a big portion of the income progress got here from acquisitions, which boosted the corporate’s topline outcomes.
“The strength of our unit growth in diagnostics along with the accelerating growth of our data business is proof that we are unique in this space,” Tempus AI’s CEO Eric Lefkofsky mentioned, including that the corporate’s investments in AI “continue to compound” and is exected to “drive significant growth over the next several years.”
JPMorgan analyst Casey Woodring lowered the worth goal on Tempus AI to $60 from $80 after the corporate’s This fall outcomes, whereas sustaining a impartial ranking on the inventory, The Fly reported.
Woodring mentioned the corporate’s “clouded visibility” on information upside and altering expectations for Ambry, an acquired genetic testing unit, make it more durable to see upside. The analyst suggests buyers could wish to keep on the sidelines for now.
Wooden says well being care is the “most underappreciated application of AI.”
“We’ve got 37 trillion cells in our body, and they’re going to be sequenced as we’re looking for cures,” Wooden instructed CNBC final 12 months.
“I think the most underappreciated application of AI is health care. I think health care is responsible for an incredible amount of storage out there right now. Data is the name of the game,” Wooden mentioned.
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