Cathie Wood, head of Ark Investment Management, doesn’t give up her favorite stocks easily.
That’s what he just did: buy one of his main holdings that is down 15% so far this year.
Wood gained a reputation after the flagship Ark Innovation ETF (ARKK) returned 153% in 2020. Last year, the fund gained 35.5%, far outpacing the S&P 500’s return of 17.9% in the same period.
But his style also brings painful losses in bear markets, as seen in 2022, when the Ark Innovation ETF fell more than 60%.
As of March 13, the Ark Innovation ETF was down nearly 10% year-to-date, while the S&P 500 was down 3%, Yahoo Finance data shows.
Those changes have weighed on Wood’s long-term earnings. The Ark Innovation ETF has returned a five-year annualized return of -11% as of this writing, while the S&P 500 has a 12.6% annualized return over the same period, according to data from Morningstar.
In the 12 months through March 12, the Ark Innovation ETF recorded approximately $1.45 billion in net outflows.Getty Images ·fake images
Wood focuses on high-tech companies in artificial intelligence, blockchain, biomedical technology and robotics. She believes these businesses have great growth potential, although their volatility often causes fluctuations in the Ark’s funds.
From 2014 to 2024, the Ark Innovation ETF wiped out $7 billion in investor wealth, according to an analysis by Morningstar analyst Amy Arnott. That made it the third biggest wealth destroyer among mutual funds and ETFs in Arnott’s ranking. The analyst has not updated the 2025 ranking.
Related: Cathie Wood Shares Surprising Message About Oil Prices
In a letter published in January, Wood says the U.S. economy is building up energy for a strong rebound in 2026.
“Despite sustained growth in real gross domestic product over the past three years, the underlying U.S. economy has been in a progressive recession and has evolved into a spring that could rebound powerfully over the next few years,” Wood wrote.
Wood also again rejects the “AI bubble” narrative, saying it is “years away” and “the most powerful capex cycle in history” is yet to come.
“What was once a ceiling on spending appears to have become a floor now that artificial intelligence, robotics, energy storage, blockchain technology and multi-omics sequencing platforms are ready for prime time,” he said.
Not all investors agree with Wood’s optimism. In the 12 months through March 12, the Ark Innovation ETF recorded about $1.45 billion in net outflows, according to ETF research firm VettaFi.
On March 11 and 12, Wood’s Ark Genomic Revolution ETF (ARKG) bought a total of 41,906 shares of Tempus AI Inc. (TEM), valued at around $2.1 million, according to Ark’s daily trading information.
As of March 13, Tempus AI is the second largest holding in ARKG and the fourth largest in ARKK, accounting for approximately 9.5% and 5%, respectively.
Tesla (TSLA) 10.57%
CRISPR Therapeutics (CRSP) 6.07%
Internet Circle Group (CRCL) 5.03%
Tempus AI (TEM) 5.02%
Shopify (STORE) 4.88%
Coinbase Global (COIN) 4.67%
Robinhood Markets (HOOD) 4.49%
Roku (ROKU) 4.06%
Advanced Microdevices (AMD) 3.82%
Palantir Technologies (PLTR) 3.59%
Tempus AI is a healthcare technology company that provides AI-based diagnostic tools that help doctors make treatment decisions. It also sells the data generated by its tests to pharmaceutical companies for drug development.
The company went public in June 2024 and Wood had actively bought its shares since the IPO.
Tempus AI stock peaked near $104 in October and is now trading around $50 per share, more than 50% off its all-time high.
The company reported its latest results on February 24, but the market reaction was negative. Tempus AI shares fell about 7% the day after the earnings report.
Related: Bank of America has a stark warning for stock investors
For the fourth quarter, Tempus AI reported a loss of 4 cents per share, narrower than the 5 cent loss expected by analysts. Revenue reached $367.2 million, beating the consensus estimate of $363.4 million and increasing 83% year over year.
However, a large portion of the revenue growth came from acquisitions, which boosted the company’s bottom line.
“The strength of our unit’s growth in diagnostics coupled with the accelerated growth of our data business is proof that we are unique in this space,” said Tempus AI CEO Eric Lefkofsky, adding that the company’s investments in AI “continue to increase” and are expected to “drive significant growth in the coming years.”
JPMorgan analyst Casey Woodring lowered Tempus AI’s price target to $60 from $80 following the company’s fourth-quarter results, while maintaining a neutral rating on the stock, The Fly reported.
Woodring said the company’s “cloudy visibility” on the benefits of the data and changing expectations for Ambry, an acquired genetic testing unit, make it harder to see the benefits. The analyst suggests investors may want to stay on the sidelines for now.
Wood says healthcare is “the most underrated application of AI.”
“We have 37 trillion cells in our body and they will be sequenced as we look for cures,” Wood told CNBC last year.
“I think the most underrated application of AI is healthcare. I think healthcare is responsible for an incredible amount of storage that exists right now. Data is the name of the game,” Wood said.
Related: Goldman Sachs renews its Brent crude forecast for the rest of 2026
This story was originally published by TheStreet on March 15, 2026, where it first appeared in the Investments section. Add TheStreet as a preferred source by clicking here.
