Cathie Wooden, head of Ark Funding Administration, has a historical past of shopping for shares shortly after their IPOs.
In recent times, Wooden’s Ark funds have invested in newly public firms comparable to Tempus AI (TEM), Coinbase (COIN), and CoreWeave (CRWV), 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 price 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 up to now this 12 months, Wooden’s flagship Ark Innovation ETF (ARKK) is down 2.85%, whereas the S&P 500 surged 8.56%, Yahoo Finance information reveals.
Wooden gained a status after the Ark Innovation ETF delivered a 153% return in 2020. Nevertheless, her type 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 features. 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, based on information from Morningstar.
Cathie Wooden expects a “nice acceleration” introduced by expertise developments
Wooden focuses on high-tech firms throughout synthetic intelligence, blockchain, biomedical expertise, and robotics. She thinks these companies have sturdy progress potential, although their volatility usually causes fluctuations within the Ark’s funds.
In keeping with Morningstar analyst Bella Albrecht, two of Wooden’s Ark funds have been among the many worst-performing ETFs within the first quarter of 2026. The Ark Subsequent Technology Web ETF (ARKW) ranked second on the checklist, whereas the ARK Innovation ETF positioned fifth.
Over the previous 12 months via June 11, the ARK Innovation ETF noticed roughly $294.27 million in internet outflows.Getty Photos
From 2014 to 2024, the Ark Innovation ETF worn out $7 billion in investor wealth, based on 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.
Extra SpaceX:
Wooden stated on the June 5 episode of “Within the Know” that she is carefully watching June 17, when Kevin Warsh, the brand new Federal Reserve chair, proclaims the following rate of interest determination.
“I do consider Kevin Warsh is aware of that rates of interest have to return down, mortgage charges at the least. And if inflation comes down as productiveness is growing, regardless of how sturdy the economic system is, I feel he’ll lower charges,” Wooden stated.
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Wooden argued that productiveness enhancements introduced by expertise are serving to drive the economic system whereas decreasing inflation. She added that oil costs already look like peaking and will fall additional if the Iran struggle is resolved.
In a March Bloomberg podcast, Wooden says the worldwide economic system will not be 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 Nice Melancholy, we’re going into the nice acceleration,” Wooden stated. “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 buyers agree with Wooden’s optimism. Over the previous 12 months via June 11, the ARK Innovation ETF noticed roughly $294.27 million in internet outflows, based on 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 most recent closing worth of $160.95, these shares have been price 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 price 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 right this moment its solely worthwhile enterprise is the Starlink satellite tv for pc web division. In keeping with the corporate’s prospectus, SpaceX has an amassed deficit of $41.3 billion as of March 31.
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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 biggest holding within the agency’s roughly $1 billion inside enterprise fund, based on Enterprise Insider.
Wooden has lengthy been one in all Musk’s greatest supporters. Throughout a 2023 CNBC present coated by TheStreet’s Moz Farooque, she stated intervals of turmoil usually convey out Musk’s greatest work.
“These troublesome instances, although, spur Elon’s creativity. He’s a troubleshooter and a superb technologist,” Wooden stated.
Nonetheless, many different buyers and analysts are skeptical about SpaceX’s momentum, citing valuation considerations and a excessive retail investor allocation within the IPO.
“The extra quick concern is the heavy retail allocation,” veteran technical dealer James DePorre wrote in a latest publish on TheStreet Professional. “The retail allocation is 30% of the providing, which is far larger than the everyday 5 to 10%.”
DePorre famous that retail buyers who acquired an allocation at $135 have an incentive to promote their shares if the value strikes meaningfully larger. “That can create some provide strain,” he wrote.
Aside from shopping for SpaceX inventory, Wooden’s latest trades additionally included promoting shares of Tesla (TSLA), Superior Micro Gadgets (AMD), Rocket Lab (RKLB), Roku (ROKU), and Chinese language tech agency Baidu (BIDU).
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