Posted on Apr 9, 2021 at 7:00 AMUpdated Apr 9, 2021, 7:22 AM
Cathie Wood is a polarizing figure. Adored by her fans, her runaway success also drew a lot of criticism. The recent slump of its flagship fund, Ark Innovation, down more than 20% since its peak on February 12, has reignited controversies over its atypical management style.
Charismatic, Cathie Wood is interviewed everywhere and each of her investment decisions is scrutinized by fans and competitors alike. Her reputation exceeds that of the management company she founded in 2014, Ark. She is indeed irreplaceable: her potential successor, research director Brett Winton, has no portfolio management experience, observes Morningstar. “The inability of the company to develop and retain talent exacerbates this key person risk: many analysts have left and most of the other nine do not have extensive experience,” warns Morningstar’s Robby Greengold.