Cathie Wood's Bold Move: 8 Straight Days Of Buying Beam Therapeutics As Stock Soars 14%

Cathie Wood is backmost successful the spotlight, and truthful is her flagship ARK Innovation ETF (NYSE:ARKK). After a unsmooth year, the money is showing signs of life—but is this the commencement of a existent comeback, oregon conscionable different short-lived rally? Investors are split, and the numbers archer an absorbing story.

So acold this year, ARKK is up 6%—a coagulated pb implicit the S&P 500's 2% summation and the Nasdaq's 1% increase. That's a invited displacement aft 2024, erstwhile ARKK returned 12%—not bad, but obscurity adjacent the S&P 500's 24% surge.

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Looking astatine the bigger picture, ARKK's longer-term numbers archer a much analyzable story. Over the past 3 years, its annualized instrumentality is -5.89%, and its five-year instrumentality hardly hits 1.03%. By comparison, the S&P 500 has delivered 13.14% and 14.27% implicit the aforesaid periods.

That's wherefore immoderate investors are inactive wary—last year, ARKK saw astir $3 cardinal successful outflows, as Yahoo Finance reports.

Michael Burry, champion known for predicting the 2008 fiscal crisis, has been 1 of ARKK's loudest critics. He argues that galore of its holdings pain done currency astatine unsustainable rates, and astatine 1 point, helium adjacent shorted the fund. Burry sees ARKK arsenic excessively babelike connected speculative maturation stocks with shaky profitability.

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Morningstar analyst  Robby Greengold has besides been skeptical of ARK Invest. Greengold downgraded the ARK Innovation ETF to a antagonistic rating, citing concerns implicit hazard absorption and portfolio concentration.

He believes the steadfast lacks structured hazard absorption and relies excessively overmuch connected assertive forecasting. The strategist outlines his concerns, pointing retired that portion Wood's strategy is bold, it besides lacks a benchmarking strategy.

But Wood isn't backing down. She believes that regulatory rollbacks and technological advancements volition substance semipermanent innovation, and she's sticking to her guns. On Feb. 20, ARK Invest bought different 170,778 shares of Beam Therapeutics Inc. (NASDAQ:BEAM), a determination that reinforces her religion successful genomics and precision medicine.