How this investor made $46B disappear

Cathie Wood made ARK Invest one of the fastest-growing investment firms in history. At its peak in 2021, it managed over 50 billion dollars by betting on artificial intelligence blockchain and electric vehicles. When markets turned, ARK’s assets collapsed to just over six billion dollars. Some say she took reckless risks, others believe she will win in the long run.

This week, we look at how she built ARK Invest, the investment strategy that set her apart, and why she refuses to change course even after massive losses:

• ☕ Leaving Wall Street to Build ARK

• 🔢 Raising over $50B from investors

• 📊 The Crash and ARK’s Fight to Recover

— Investor Briefcase Team

Cathie Wood spent decades inside some of the most respected firms in finance but she never fit the mold of a traditional investor. While most focused on safe well-established companies she believed the biggest gains would come from betting on the future.

Her career began after graduating summa cum laude in finance and economics from the University of Southern California. She started at Capital Group, then moved to Jennison Associates, where she spent nearly two decades managing money, analyzing market trends, and overseeing billions in assets. By the time she became chief investment officer at AllianceBernstein she was leading global investment strategies.

Despite her success she felt something was missing. The investment industry was slow to recognize the potential of transformative technologies. Artificial intelligence, genomics and robotics were advancing rapidly but few firms were paying attention. She wanted to build a fund that focused entirely on these emerging fields.

Her firm dismissed the idea, calling it too risky and too unconventional. So, she decided to quit her job to do it herself.

In 2014 she launched ARK Invest using her own money. She named it after the Ark of the Covenant as a symbol of her belief in long-term innovation. Her goal was to find the next Tesla before the rest of Wall Street did and it would not take long before billions of investor capital decided to back her vision.

Most investors at that time followed passive index funds or diversified portfolios. Cathie proposed a different model. She wanted to create actively managed exchange-traded funds that concentrated investments in a small number of companies with high-growth potential. Instead of betting on safe blue-chip stocks her ETFs focused on emerging tech companies with a much higher upside.

At the time actively managed ETFs were rare. Most tracked major indexes and avoided speculative bets. Wood believed this approach failed to capture the massive shifts happening in technology. She needed investors who would back her vision.

Raising capital was not easy. Many viewed her strategy as too risky and volatile. Institutional investors were skeptical but retail investors were drawn to her high-conviction approach.

She built trust by making transparency a core part of ARK’s strategy. Unlike traditional firms that kept their trades private ARK published its research and daily trading activity. Investors could see exactly what she was buying and selling in real time.

Her early investments in Tesla Square and Coinbase delivered massive gains. As these companies soared ARK’s funds became some of the best-performing in the world. By 2021, ARK Invest was managing over 50 billion dollars.

She became one of the most well-known investors in finance, known for her high-risk, high-reward strategy, and investors were equally bullish on the future.

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For a time it looked like Cathie Wood had figured out how to beat the market. ARK’s flagship fund returned over 150 percent in 2020. Tesla her biggest investment surged more than 1,000 percent. Investors poured money into ARK’s funds and she had become one of the best performing fund managers on Wall Street.

Then it all eventually disappeared.

In 2022 high-growth tech stocks collapsed. Rising interest rates and inflation made speculative investments less attractive. The same companies that had delivered massive gains now faced steep losses. ARK’s funds lost over 60 percent of their value.

Investors lost confidence and began pulling their money. ARK’s funds had managed approximately $59 billion at their peak, but within two years, that number dropped to $6.71 billion. More than 80 percent of its assets vanished as retail and institutional investors fled.

Critics said her strategy was reckless. Some compared her to investors caught in the dot-com bubble who ignored the risks of overhyped technology. Others argued that her investments in companies with little to no profits were destined to fail.

She refused to change course.

Instead of selling, she doubled down. She increased her stakes in Tesla, Zoom, and Coinbase, confident that these companies would recover.

However, following declining stock prices, ARK Invest has been forced to scale back. With billions in capital gone, the firm had fewer resources to make aggressive moves. The collapse hurt its ability to attract new investors, and many questioned whether ARK would ever regain its dominance.

Some believe she is reshaping how investing works. Others say she is refusing to admit failure. What is clear is that she is not following Wall Street’s rules.

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Other Notable Women in Finance

> Abigail Johnson: CEO of Fidelity Investments, she expanded digital and crypto offerings, steering one of the world’s largest asset managers.

> Sonia Gardner: Co-founder of Avenue Capital, Gardner is a leader in distressed debt investing, building a top credit-focused firm.

> Lubna Olayan: Chair of Olayan Financing Company, she oversees a major investment conglomerate and champions financial modernization in the Middle East.

> Anne Walsh: CIO of Guggenheim Partners, Walsh is a fixed-income expert managing multi-billion-dollar credit portfolios.

Each week we profile the most notorious investment stories.

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