NEWSLETTER
Cathie Wood, director of Ark Investment Management, usually focuses on the technological actions of the USA.
Sometimes, it also sees opportunities outside the United States, one of its greatest objectives abroad is China, the second largest economy in the world.
That was what he did last week. She bought $ 12 million of a Chinese technology.
Wood Background, Ark Innovation ETF (Sheet) It has dropped 17.41% in the year until March 31, while the Nasdaq Composite and S&P 500 lost 10.42% and 4.59% during the same period, respectively.
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Opinions about wood vary. For his followers, he is a visionary with a remarkable performance of 153% in 2020. However, his long -term performance has generated doubts about his aggressive and opportunistic approach.
As of March 31, Ark Innovation ETF, with $ 6 billion under administration, has delivered an annualized return of three years of 10.47% negative and a five -year yield of 2.08%.
In comparison, the S&P 500 index has a three -year annualized yield of 9.06% and a five -year yield of 18.09%.
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Cathie Wood's investment strategy simplified
Wood's investment strategy is simple: its ETF Ark generally buy actions in high –tech emerging companies in fields such as artificial intelligence, blockchain, biomedical and robotic technology.
Wood says that these companies have the potential to remodel industries, but their volatility leads to large fluctuations in Ark's funds.
RELATED: The Net Heritage of Cathie Wood: The wealth and income of the CEO of the CEO of Ark Invest
Morningstar analyst Amy Arnott, estimated that the ETF of Innovation ARK destroyed $ 7 billion of shareholders during the 10 -year period that ended in 2024. That put the ETF as number 3 in its list of destruction of wealth for mutual funds and ETF during that period.
Wood has expressed optimism about a change to the most loose regulation under the presidency of Donald Trump.
She said on March 4 that the Trump administration could be even better for investors that Ronald Reagan's pro-negotia, according to Bloomberg.
“The Reagan revolution, and I was there and it was very pleasant, it was the peak, the golden age of active capital management,” Wood said. “That is going back. I think he's going back. I think this eclipses that, and that was quite good.”
But not all investors share Wood's trust. The Ark Innovation ETF has seen a net exit of $ 2.44 billion in the last 12 months until March 28, according to the ETF Vettafi investigation firm.
Cathie Wood Buy $ 12 million of Baidu shares
On March 24, Wood's Ark Funds bought 129,451 Baidu Inc shares (Beginning) .
That piece of shares is valued at approximately $ 11.9 million.
Baidu, the largest search engine in China, has been making developments in its artificial intelligence and autonomous mobility.
The technological giant recently launched its ai model, Ernie X1, and the advanced version, Ernie 4.5, challenging colleagues like Openai and Deepseek. Baidu said that Ernie X1 “offers pair performance with Deepseek R1 at half the price.”
This is not Wood's first bet in Baidu or in the broader Chinese market. Over the years, its relationship with Chinese actions has been a roller coaster of bold bets and retreats.
Related: Cathie Wood sells $ 16 million of Megacap tech shares
At the beginning of the 2020s, Wood was optimistic for Chinese technological giants, building significant bets in companies such as Baidu, Tencent and JD.com.
At the beginning of 2021, their funds had almost 5 million Baidu shares worth $ 1 billion, driven by optimism on the increase in the general stock market of China and Baidu's thrust in electric vehicles through its joint company JIDU jointly with Geely, which is parallel to its Tesla investment.
However, Wood's investment was affected in 2021 since Beijing intensified its regulatory repression against technological companies, and gradually reduced their bets.
For the third quarter of 2022, Ark had completely left his position in Baidu. The recent purchase of Wood marks the first time he bought Baidu shares in more than two years.
Wood recently told Bloomberg on how Robin Li, CEO of Baidu, is working to grow the Baidu self -employed business.
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“We recently had a conversation with Robin Li and his team and we understand how competitive the market is in China both for autonomous mobility and for large language models. But we are seeing how Robin Li is pushing the envelope. Wuhan is the hardest in China. He can take learning from that robotaxi experience in other markets,” Wood said.
“We believe that autonomous mobility in the next 5 to 10 years will be climbed worldwide to a market of $ 8 to $ 10 billion. If Baidu obtained any of that market even outside China in the rest of Asia, we believe that this is not discounted in the shares,” he added.
Baidu's shares rose 11.28% in the year they will be held.
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