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Cathie Wood Talks Market Outlook, Ark Invest Positioning, Tesla On CNBC: What Investors Need To Know

Cathie Wood, the founder, CIO and CEO of Ark Invest, appeared on CNBC's "Closing Bell" Friday for an interview.  Wood's Market Outlook: The recent rotation in stocks is good news because it signals a broadening of the bull market, she said. 

05/07/2021 16:33

Cathie Wood, the founder, CIO and CEO of Ark Invest, appeared on CNBC's "Closing Bell" Friday for an interview. 

Wood's Market Outlook: The recent rotation in stocks is good news because it signals a broadening of the bull market, she said. 

Wood said she expected a compound annual rate of return of 15% on her investing strategy in February, but now that many of the stocks in her Ark Funds have trended lower over the last couple months, she said she expects a return in the 25-30% range.

Wood On Ark ETFs: "The ETF ecosystem is a beautiful thing for portfolio managers," Wood said. 

Ark Invest is able to offer a much more tax efficient portfolio in the ETF "wrapper" than it could in a mutual fund, she said. 

Ark Invest's fund flows went from $10 billion to $80 billion in just under a year, she said, adding that the acceleration in fund flows was "parabolic."

The company is used to exponential growth, but Ark Invest's recent growth was even "faster than that," she said.

The company has risk control measures in place that make sure it does not own too much of one stock, Wood told CNBC.

Check out the Raz Report podcast with Cathie Wood.

Wood On Tesla: Wood expects to see surprising breakthroughs in autonomous driving from Tesla Inc (NASDAQ:TSLA) in the next two years, she told CNBC.

Tesla is going to make the shift to autonomous at scale much more quickly than any of its competitors, the pro investor said. 

Wood Sees More To Stay-At-Home Trade: Ark Invest is legging back into many of the stay-at-home names, as they have been out of favor as investors see an end to the COVID-!9 pandemic on the horizon.

Wood told CNBC that she doesn't think people are going back to the old way of doing things.

Many of these companies are platform companies for the new world, not just stay-at-home trades, she said, adding that these companies offer a better, cheaper and faster ways of doing things. 

Wood On Twitter: Ark Invest's Twitter Inc (NYSE:TWTR) analyst has been experimenting with Twitter's "Spaces" product, and he thinks it could do very well, Wood said.

Ark also thinks that "tipping" might become an important part of Twitter's monetization strategy, she said.

Twitter is Ark Invest's most productive social network, she said, adding that the company shares much of its research using the platform.