As Ark’s flagship fund plunges 76% from its peak, Cathie Wood still sees its stocks as residing in ‘deep value territory’

The wheels have really taken off in the stock market, and Cathie Wood’s ARK Invest has seen arguably the most dramatic drop in its parabolic rise, amid the current market decline.

However, the S&P 500 SPX,
clinging to the precipice of a bear market – a decline of at least 20% from its recent high – and the tech-heavy Nasdaq Composite COMP,
The nearly 30% drop since its peak apparently did not shake Wood’s belief that his strategy of targeting super-high growth tech stocks will return to fashion.

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In a Wednesday tweet, the managing director of ARK Investment Management waded into the idea that Ark’s suite of disruptive tech stocks represents a huge value opportunity for potential investors.

“Genomic sequencing, adaptive robotics, energy storage, AI and blockchain technology are realities, their actions seeming in deep value territory,” she tweeted,

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Yet ARK’s stock market bets on disruptive innovation have fallen this year, even as the founder maintains that the fundamentals, for the most part, have “not deteriorated”.

Wednesday’s tweet from Wood comes in the form of shares in ARK Innovation ETF ARKK,
its flagship fund, are down more than 76%, as of Wednesday’s close.

Despite Wood’s conviction, investors appear to be heading for the hills, leaving the market in a state of disarray amid fears carnage could unfold in the Nasdaq, S&P 500 and Dow Jones Industrial Average DJIA,
it may still be too early to safely screen buying opportunities.

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Earlier in the week, Wood tweeted his opinion that companies like Zoom Video Communications ZM,
which has also been pounded amid a protracted reassessment of once high-flying names, would be a major beneficiary of the undergraduate “rip and replace” cycle since the early 1990s in the global communications space.

But so far this year, investors have not bought into Wood’s thesis.

Carol N. Valencia