Any new buy or sell by charismatic stock picker Cathie Wood draws plenty of headline attention from financial media - and from market participants, as well. The maverick fund manager, known for making outsized bets on “disruptive” tech companies, has garnered her fair share of both followers and critics over the years. However, investors attempting to reproduce Wood's momentum-driven investing strategy needs to get ready for a wild ride; for every breakout stock like Nvidia (NVDA) or Tesla (TSLA), there is a dud like Unity Software (U) or Invita (NVTA).
Notably, Wood's specific investing strategy tends to yield the best returns over the shorter term. Her flagship Ark Innovation ETF (ARKK) is outperforming the Nasdaq Composite ($NASX) on a year-to-date basis - up 50% versus a gain of just over 35% for the broad-based index - but over longer time frames, like the three-year period shown below, ARKK lags the Nasdaq by a considerable margin.
