Feb 13 - According to sources, Cathie Wood, CEO of Ark Investment Management (ARKK, Financial), shifted her strategy this week by offloading a tech stock that tumbled nearly 50% last year. In a decisive move, Wood trimmed positions in an asset that has underperformed, signaling a course correction in her otherwise bold investment approach. Her flagship fund, Ark Innovation, returned 10% this year as of Feb. 13, outperforming broader benchmarks such as the S&P 500 and Nasdaq Composite, which recorded gains of roughly 3% and 3.5%, respectively.

The adjustment follows a divided view of Wood's aggressive tactics. They applaud her groundbreaking thinking: Her 2020 return of 153% is cited as proof she can detect disruptive technologies, while skeptics note the annualized three-year return of Ark Innovation ETF, –5.15%, the five-year return of 1.7%. Over three years, the S&P 500 posted returns of 12.88% annually; over five, the returns were 14.34%.

However, analysts say that Wood shows both adaptability and the difficulties involved in high-growth tech investing by recalibrating her portfolio. Investors are cautious while they monitor Ark Investment Management's next strategic moves on the back of continued adjustments to its holdings to reflect the market volatility.