Wood, whose flagship $19.7 billion Ark Innovation fund was the top-performing U.S. equity fund in 2020, said that China’s recent steps to crack down on sectors ranging from gaming to education to financial firms are increasing the likelihood of a policy mistake that leads to a sharp slowdown.
“I really do think that the policy makers in China are beginning to play with fire,” she said, adding “We will look back at this period in six months and say ‘Wasn鈥檛 it obvious there will be a major and unexpected slowdown in China?’”
ARK Innovation fund rallied last year due to its outsized bets on companies such as Tesla and Teledoc Health Inc. that surged during the pandemic. Yet increasing concerns about inflation have weighed on the fund, leaving it down 11.4 percent for the year compared with a roughly 17 percent gain for the benchmark S&P 500.
Shares of ARK Innovation rose 1.5 percent in Tuesday afternoon trading, helped by a 2.4 percent gain in top-holding Tesla.
By David Randall
Pezou : ARK Invest’s Wood Warns Upcoming Economic Downturn in China ‘Obvious’