“Private markets understand this,” Wood said on Tuesday as he took the stage at the Exchange ETF conference in Miami, referring to company valuations seen in venture capital agreements. But ARK bets on the subversive innovation stock market have sunk this year, even as Wood argues that fundamentals, for the most part, “have not deteriorated.” “During periods of no risk, we always pool our portfolios,” he said, preferring the “names with the highest beliefs” identified by ARK. Some of the “consolidation” candidates that emerged were “floating” while other bets were “crushed”, he said. Shares of ARK Innovation ETF ARKK closed steadily on Tuesday and have fallen almost 37% so far this year, according to FactSet. Stock market equity fell last week, falling about 10%, data show. See: Cathie Wood’s ARK Innovation ETF falls on the stock exchange on Wednesday While on stage at the conference, Wood was asked how often she talks to Elon Musk, CEO of Tesla Inc. TSLA, + 1.13%, and for its relationship with Twitter, the social media company in which it recently acquired a stake became its largest single shareholder. Read: Twitter CEO Says Elon Musk Will Not Join His Board “I think people will be surprised at how young Elon and I talk,” Wood said. ARK, which owns shares in Tesla, is interested in the company’s technologies, including artificial intelligence strategy, robotics and battery technology, he said, as well as Musk’s “vision”. As for Twitter TWTR, -5.38%, where Musk has more than 81 million followers, Wood said that “for Elon, all the publicity is good publicity.” Tesla spends “zero” on advertising, he said. ARK supports “radical transparency” in the financial services industry, according to Wood. “We are giving our research away,” he said. “We share our ideas.” Wood also said that “we will publish our models” on GitHub. “Investors will be able to change the variables in the models” whether you think we are very aggressive or not aggressive enough, “he said. In addition, ARK discloses its inventories every day, Wood said. He said that the transparency of ARK can help increase shareholder confidence in the asset manager’s investment strategy, while some investors may use the information in their own personal investment portfolios. “Innovation is happening at an accelerating pace,” Wood said. “Tesla and bitcoin BTCUSD, + 1.17% only have changed people’s lives.”
