Cathie Wood, chief of Ark Investment Management, often adjusts her top holdings, buying more stocks when prices dip and selling as they rise.
In the past week, she sold a stock that has surged 37% over the past month.
The first half of 2025 has been a rollercoaster for Wood’s funds, moving from deep slumps to impressive rallies.
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In January and February, the Ark funds rallied as investors bet on the Trump administration’s potential deregulation that could benefit Wood’s tech bets. But the momentum faded in March and April, with the funds trailing the market as top holdings — especially Tesla, her biggest position — slid amid growing concerns over the macroeconomy and trade policies.
Now, the fund is regaining momentum. As of July 3, the flagship Ark Innovation ETF (ARKK) is 23.4% year-to-date, far outpacing the S&P 500’s 6.8% gain.
Wood’s remarkable return of 153% in 2020 helped build her reputation and attract loyal investors. Her strategy can lead to sharp gains during bull markets but also painful losses, like in 2022, when ARKK dropped more than 60%.
As of July 3, Ark Innovation ETF, with $5.5 billion under management, has delivered a five-year annualized return of negative 0.56%. The S&P 500 has an annualized return of 16.69% over the same period.
Image source: Fallon/AFP via Getty Images
Cathie Wood’s investment strategy explained
Wood’s investment strategy is straightforward: Her Ark ETFs typically buy shares in emerging high-tech companies in fields such as artificial intelligence, blockchain, biomedical technology, and robotics.
According to Wood, these companies have the potential to reshape industries, but their volatility leads to major fluctuations in Ark funds’ values.
Related: Cathie Wood’s net worth: The Ark Invest CEO’s wealth & income
The Ark Innovation ETF wiped out $7 billion in investor wealth over the 10 years ending in 2024, according to an analysis by Morningstar’s analyst Amy Arnott. That made it the third-biggest wealth destroyer among mutual funds and ETFs in Arnott’s ranking.
Wood has been bullish on the market. In a letter to investors published in late April, she dismissed predictions of a recession dragging into 2026 and struck an optimistic tone for tech stocks.
“During the current turbulent transition in the U.S., we think consumers and businesses are likely to accelerate the shift to technologically enabled innovation platforms including artificial intelligence, robotics, energy storage, blockchain technology, and multiomics sequencing,” she said.
But not all investors echo this optimism. Over the past 12 months through July 3, the Ark Innovation ETF saw $2.1 billion in net outflows, with $43 million exiting the fund in the past five days, according to ETF research firm VettaFi.
Cathie Wood sold $47.9 million of Coinbase stock
From June 30 to July 2, Wood’s Ark funds sold 137,075 shares of Coinbase Global Inc. (COIN) . That chunk of stocks is worth roughly $47.9 million.
Coinbase runs the biggest crypto exchange in the U.S. and generates revenue through transaction fees from cryptocurrency trading on its platform.
Despite Wood’s recent sales, Coinbase remains the second-largest holding in the ARK Innovation ETF, accounting for 8.4% of the portfolio.
Related: Analyst drops bold words on Tesla stock
The stock closed at $355.80 on July 3, up 37.4% over the past month, lifted by a wave of optimism around crypto regulation, product expansion, and investor interest in Bitcoin.
One of the key drivers was the U.S. Senate’s passage of the GENIUS Act, a bill that outlines clearer rules for stablecoins. The legislation could help ease uncertainty around crypto compliance and pushed Coinbase stock sharply higher in mid-June.
Coinbase’s rally also gained momentum as it launched its new payment service, Coinbase Payments, which allows 24/7 USD Coin (USDC) transactions. The platform is already being used by Shopify and has attracted interest from major retailers like Amazon and Walmart.
Bernstein analysts called Coinbase “the most misunderstood company” and raised their price target to $510 from $310, according to a research note published in late June.
“The bear thesis on Coinbase has not played out,” Bernstein analysts said, adding that “Coinbase’s market share has been persistent despite new competition.”
The broader crypto rally has further supported Coinbase’s recent gains.
Trump’s tariff policy led to Bitcoin’s price falling to about $75,000 on Apr. 9 until he withdrew some of those hikes. The cryptocurrency soon bounced back and hit a new all-time high of $111,970 on May 22.
Though Bitcoin’s price fell below $99,000 on June 22 during the U.S.-Israel-Iran conflict, it quickly recovered above $105,000 on June 24. At the time of writing, Bitcoin was trading at $108,585.
Wood recently highlighted Bitcoin’s resilience amid recent crises. “Bitcoin really held its own,” she said during ARK’s “In The Know” show on July 3. “I think that’s a very, very positive thing.”
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Wood has long been an advocate for Bitcoin. She has previously forecast that the cryptocurrency’s price could top $1.5 million, and now she reaffirms her stance.
“We are still in a bull market for Bitcoin,” she said during the show, adding that Bitcoin has been “threatening new highs” and acting more like a risk-off asset. She also noticed that more people are willing to hold Bitcoin and gold, “especially during the market tremor.”
Related: Cathie Wood buys $20.7 million of surging tech stock
