Cathie Wood, chief of Ark Investment Management, often trims her biggest winners after sharp rallies.
This week, she’s selling Tempus AI (TEM), taking some shares off the table after the healthcare AI stock surged nearly 30% in days and became the second-largest holding in her fund
Last year, the flagship Ark Innovation ETF gained 35.49%, far outpacing the S&P 500’s return of 17.88% in the same period. So far this year, Wood’s flagship Ark Innovation ETF (ARKK) is up 10.16% as of Aug. 26, while the S&P 500 surged 12.13%, Yahoo Finance data show. Wood gained a reputation after the Ark Innovation ETF delivered a 153% return in 2020.
But her style also brings painful losses in bearish markets, as seen in 2022, when the Ark Innovation ETF tumbled more than 60%. Those swings have weighed on Wood’s long-term gains. As of Aug. 26, her Ark Innovation ETF has delivered a five-year annualized return of -6.21%, while the S&P 500 has an annualized return of 11.42% over the same period, according to data from Morningstar.