Cathie Wood, head of Ark Investment Management, often buys her favorite tech stocks when prices dip.
This is what she did in late May, adding shares of a popular AI company after a pullback.
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Wood’s funds saw a brief bump after Trump won the presidency last November, but that momentum didn’t go far. Her flagship Ark Innovation ETF (ARKK)  underperformed the S&P 500 index amid broader market volatility this year.
Year-to-date, ARKK is down 2.15%, while the S&P 500 index is up 0.51%.
Wood gained a remarkable 153% in 2020, which helped build her reputation and attract loyal investors. Still, her long-term performance has made many others skeptical of her aggressive style.
As of May 30, Ark Innovation ETF, with $5 billion under management, has delivered a five-year annualized return of negative 1.66%. In comparison, the S&P 500 has an annualized return of 15.94% over the same period.
Cathie Wood’s flagship Ark Innovation ETF has seen $2.02 billion in net outflows over the past year through May 29.
Image source: Marco Bello/Stringer/Getty Images
Cathie Wood’s investment strategy explained
Wood’s investment strategy is straightforward: Her Ark ETFs typically buy shares in emerging high-tech companies in fields such as artificial intelligence, blockchain, biomedical technology, and robotics.
Wood says these companies have the potential to reshape industries, but their volatility leads to major fluctuations in Ark funds’ values.
Related: Cathie Wood’s net worth: The Ark Invest CEO’s wealth & income
The Ark Innovation ETF wiped out $7 billion in investor wealth over the 10 years ending in 2024, according to an analysis by Morningstar’s analyst Amy Arnott. That made it the third-biggest wealth destroyer among mutual funds and ETFs in Arnott’s ranking.
Wood recently said the U.S. is coming out of a three-year “rolling recession” and heading into a productivity-led recovery that could trigger a broader bull market.
In a letter to investors published last month, she dismissed recession predictions as she expects “more clarity on tariffs, taxes, regulations, and interest rates over the next three to six months.”
“If the current tariff turmoil results in freer trade, as tariffs and non-tariff barriers come down in tandem with declines in other taxes, regulations, and interest rates, then real GDP growth and productivity should surprise on the high side of expectations at some point during the second half of this year,” she wrote.
She also struck an optimistic tone for tech stocks.
“During the current turbulent transition in the U.S., we think consumers and businesses are likely to accelerate the shift to technologically enabled innovation platforms including artificial intelligence, robotics, energy storage, blockchain technology, and multiomics sequencing,” she said.
But not everyone shares Wood’s bullish outlook. Her flagship Ark Innovation ETF has seen $2.02 billion in net outflows over the past year through May 29, including nearly $144 million in the last month alone, according to ETF research firm VettaFi.
Cathie Wood bought $13.9 million of Tempus AI stock
On May 28, Wood’s Ark funds bought 251,080 shares of Tempus AI (TEM) . That chunk of stock was valued at roughly $13.9 million as of May 30’s close.
Wood has been actively buying Tempus AI’s stock since last June’s IPO. Former Speaker of the House Nancy Pelosi also bets on this stock. In January, Pelosi bought 50 call options (a bet that a stock will rise) for Tempus AI valued at least $50,000.
Related: Cathie Wood buys $2.7M surging China tech stock after tariff talks
Tempus AI is a health technology company founded in 2015. It uses AI for diagnostics and helps physicians make personalized, data-driven decisions.
The stock plunged more than 19% on May 28 after short-seller Spruce Point Capital Management released a report raising concerns about management’s alleged history of promoting disruptive technology companies with revenue recognition issues and shareholder losses.
The report also questioned the validity of Tempus AI’s artificial intelligence services, citing minimal revenues and product demonstrations.
Tempus AI responded that the report is “riddled with hypotheticals and inaccuracies and fails to address Tempus’ history of strong financial performance and impressive growth.”
Wood’s team said it has investigated the credibility of these allegations. The team believes that Tempus AI “remains focused on delivering data-driven, AI-enabled, patient-centered diagnostics and improving outcomes through precision medicine,” according to a weekly letter to investors.
Despite that tumble, Tempus AI stock has surged 63% year-to-date.
On May 6, the company reported first-quarter results, with revenue climbing 75.4% year-over-year to $255.7 million. Gross profit surged 99.8% to $155.2 million, driven by continued margin gains in its Genomics and Data and Services segments.
It raised its full-year 2025 revenue forecast to $1.25 billion, reflecting roughly 80% growth from the previous year. However, the company is still not profitable, and net loss for the quarter widened to $68 million from $64.7 million.
Wood says health care is the “most underappreciated application of AI.”
“We’ve got 37 trillion cells in our body, and they’re going to be sequenced as we’re looking for cures,” Wood told CNBC in February.
“I think the most underappreciated application of AI is health care. I think health care is responsible for an incredible amount of storage out there right now. Data is the name of the game.”
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As of May 31, Tempus AI ranked sixth among Ark Innovation ETF’s holdings, accounting for 5.1% of the portfolio with a market value of $284.8 million.
Wood’s latest trades this week also include buying shares of Nvidia (NVDA) , Advanced Micro Devices (AMD) , Iridium Communications (IRDM) , Intuitive Machines (LUNR) , and Intellia Therapeutics (NTLA) . At the same time, she trimmed positions in Tesla (TSLA) , Roblox (RBLX) , and CoreWeave (CRWV) .
