Cathie Woodhead of Ark Funding Administration, has a historical past of shopping for shares shortly after their IPOs.
Lately, Wooden’s Ark funds have invested in newly public firms resembling Tempus AI (TEM), Coinbase (COIN), and CoreWeave (CRV), reflecting her technique of gaining early publicity to high-growth companies in synthetic intelligence, cryptocurrency, and cloud computing.
Now, Wooden is making one other IPO guess, shopping for greater than $529 million value of SpaceX inventory.
In 2025, the flagship Ark Innovation ETF gained 35.49%, far outpacing the S&P 500‘s return of 17.88% in the identical interval. However to date this 12 months, Wooden’s flagship Ark Innovation ETF (SHEET) is down 2.85%, whereas the S&P 500 surged 8.56%, Yahoo Finance data reveals.
Wooden gained a status after the Ark Innovation ETF delivered a 153% return in 2020. Nevertheless, her fashion additionally brings painful losses in bearish markets, as seen in 2022, when the Ark Innovation ETF tumbled greater than 60%.
These swings have weighed on Wooden’s long-term positive aspects. As of June 12, the Ark Innovation ETF has delivered a five-year annualized return of -8.06%whereas the S&P 500 has an annualized return of 11.84% over the identical interval, in response to information from Morningstar.
Cathie Wooden expects a “nice acceleration” introduced by know-how developments
Wooden focuses on high-tech firms throughout synthetic intelligence, blockchainbiomedical know-how, and robotics. She thinks these companies have robust development potential, although their volatility usually causes fluctuations within the Ark’s funds.
In accordance with Morningstar analyst Bella Albrechttwo of Wooden’s Ark funds had been among the many worst-performing ETFs within the first quarter of 2026. The Ark Subsequent Era Web ETF (ARKW) ranked second on the checklist, whereas the ARK Innovation ETF positioned fifth.
Over the previous 12 months by June 11, the ARK Innovation ETF noticed roughly $294.27 million in internet outflows.Getty Pictures
From 2014 to 2024, the Ark Innovation ETF worn out $7 billion in investor wealth, in response to a March 2025 evaluation by Morningstar’s analyst Amy Arnott. That made it the third-biggest wealth destroyer amongst mutual funds and ETFs in Arnott’s rating. The analyst hasn’t up to date her rating.
“I do consider Kevin Warsh is aware of that rates of interest have to return down, mortgage charges at the very least. And if inflation comes down as productiveness is rising, irrespective of how robust the economic system is, I believe he’ll reduce charges,” Wooden mentioned.
Wooden argued that productiveness enhancements introduced by know-how are serving to drive the economic system whereas lowering inflation. She added that oil costs already seem like peaking and will fall additional if the Iran warfare is resolved.
In a March Bloomberg podcastWooden says the worldwide economic system is just not heading right into a downturn, however into what she calls a “nice acceleration” pushed by AI and different breakthrough applied sciences.
“We’re not going into the Great Depressionwe’re going into the nice acceleration,” Wooden mentioned. “These applied sciences are deflationary… AI coaching prices are dropping 75% per 12 months, and inference prices are falling as a lot as 85% to even 98% yearly.”
However not all traders agree with Wooden’s optimism. Over the previous 12 months by June 11, the ARK Innovation ETF noticed roughly $294.27 million in internet outflows, in response to information from ETF analysis agency VettaFi.
Cathie Wooden buys $529.7million of SpaceX inventory
On June 12, Wooden’s Ark funds purchased a complete of three,291,184 shares of House Exploration Applied sciences Corp (SPCX), extra generally referred to as SpaceX. Primarily based on the newest closing value of $160.95, these shares had been value about $529.7 million.
June 12 was SpaceX’s first day of buying and selling, and its shares surged 19%. The rally pushed Elon Musk‘s internet value above $1 trillion, making him the world’s first trillionaire. Musk additionally serves as CEO of EV maker Tesla (TSLA).
Musk based SpaceX in 2002 as a reusable rocket firm, however in the present day its solely worthwhile enterprise is the Starlink satellite tv for pc web division. In accordance with the corporate’s prospectusSpaceX has an amassed deficit of $41.3 billion as of March 31.
Wooden was already a SpaceX investor earlier than the corporate’s IPO. Ark Make investments first purchased SpaceX shares in late 2023, and it later grew to become the most important holding within the agency’s roughly $1 billion inside enterprise fund, according to Business Insider.
Wooden has lengthy been considered one of Musk’s largest supporters. Throughout a 2023 CNBC present coated by TheStreet’s Moz Farooqueshe mentioned durations of turmoil usually deliver out Musk’s greatest work.
“These troublesome occasions, although, spur Elon’s creativity. He’s a troubleshooter and an excellent technologist,” Wooden mentioned.
Nonetheless, many different traders and analysts are skeptical about SpaceX’s momentum, citing valuation issues and a excessive retail investor allocation within the IPO.
“The extra fast concern is the heavy retail allocation,” veteran technical dealer James DePorre wrote in a recent post on TheStreet Pro. “The retail allocation is 30% of the providing, which is far increased than the everyday 5 to 10%.”
DePorre famous that retail investors who obtained an allocation at $135 have an incentive to promote their shares if the worth strikes meaningfully increased. “That may create some provide stress,” he wrote.
Apart from shopping for SpaceX inventory, Wooden’s latest trades additionally included promoting shares of Tesla (TSLA), Superior Micro Units (AMD), Rocket Lab (RKLB), Yr (OF THE YEAR), and Chinese language tech agency Baidu (BEGINNING).
