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ARK'S Wood sees Europe in recession, high oil prices to drive EV sales

March 08, 2022 at 03:25 pm EST

NEW YORK (Reuters) - Europe's economy is likely already in a recession as a result of the Russian invasion of Ukraine and the U.S. economy may not be far behind, which will likely prompt companies and consumers to look toward technology to lower costs, star stock picker Cathie Wood of Ark Invest said in a webinar on Tuesday.

Wood, whose ARK Innovation fund outperformed all other U.S. equity funds following the coronavirus lockdowns in 2020 before stalling in February 2021, said that soaring oil prices should accelerate the transition to electric vehicles, while genomics companies should benefit as a form of cost-saving compared to existing forms of treatment.

"The good news is that innovation solves problems," Wood said.

Wood's optimism comes as her flagship ARK Innovation fund is down 38.6% for the year to date as high inflation saps investor appetite for the high-growth and low-revenue companies that are mainstays of her portfolio. Her largest position, Tesla Inc, is down 32% for the year to date, while streaming company Roku Inc, another top holding, is down nearly 52% over the same time.

The benchmark S&P 500 is down 11.8% for the year to date.

The shock of high gas prices may prompt the Federal Reserve to back off its plan to raise interest rates repeatedly this year, Wood said.

"We've got a lot of fear baked into the markets," she said.

(Reporting by David Randall; editing by Jonathan Oatis)

By David Randall

Stocks mentioned in the article

	Add to a list Add to a list 0 selected To use this feature you must be a member Log in Sign up	Price	Change	5d. change	Capi.
	TESLA, INC.	178.1 USD	-0.40%	-0.64%	568B

Cathie Wood

Catherine Duddy Wood is the founder and currently holds the position of Chief Executive Officer & Chief Investment Officer at ARK Investment Management LLC, which was founded in 2013. She is also the founder and CEO and CIO at ARK Ventures, founded in 2014. In addition to her founding positions, Ms. Wood currently holds several other roles. She is a Director at NexPoint Homes Trust, Inc. since 2022, an Independent Director at NexPoint Real Estate Finance, Inc. since 2020, the Executive Director at Wall Street Blockchain Alliance since 2018, a Director at Strange Brewing SA since 2018, a Director at Mimik Technology, Inc., a Director at Vinebrook Homes Trust, Inc. since 2020, an Independent Non-Executive Director at Amun Holdings Ltd. since 2018, an Independent Director at NexPoint Residential Trust, Inc. since 2020, and an Independent Trustee at NexPoint Diversified Real Estate Trust since 2022. Ms. Wood has held several former positions throughout her career. She was a Managing Director at Jennison Associates LLC from 1980 to 1998, a Partner at Tupelo Capital Management LLC from 1998 to 2001, the Chief Investment Officer at AllianceBernstein LP in 2013, and an Assistant Economist at Capital Research & Management Co. from 1977 to 1980. Ms. Wood obtained her undergraduate degree from the University of Southern California in 1981.

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ARK Investment Management LLC ARK Investment Management LLC Investment ManagersFinance ARK Investment Management LLC (dba ARK Invest) is a registered investment advisor headquartered in St. Petersburg, Florida. The firm was founded by Catherine Wood in 2013 and is primarily owned by ARK Investment Management LP. ARK Invest is the investment manager and provides management and supervisory services to the ARK ETFs.	Chief Executive Officer
ARK Ventures ARK Ventures Investment ManagersFinance ARK Ventures (ARK Ventures) is a venture capital subsidiary of ARK Investment Management LLC founded by Catherine Wood. The firm is headquartered in St. Petersburg, Florida.	Chief Executive Officer

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