Cathie Wood’s magic touch is so powerful these days she can trigger gains for funds she doesn’t even run.
News on Wednesday that Ark Investment Management has filed to launch the ARK Space Exploration ETF (ARKX) sparked a rally for similar funds as well as for companies linked to everything from intergalactic travel to out-of-this-world broadband.
The Procure Space exchange-traded fund (UFO) jumped 4.9% by 10:15 a.m. in New York on Thursday, the most on a closing basis since May. The SPDR S&P Kensho Final Frontiers ETF (ROKT) added 2.8%, and shares in Richard Branson-founded Virgin Galactic Holdings Inc. soared 19%.
“People want to follow her,” said James Pillow, managing director at Moors & Cabot Inc.
“She pounded the table on battery technology and electric vehicles when no one else was interested in that investment space, and she was right. People don’t forget that.”
It’s a striking demonstration of just how hot Ark and founder Wood have become in the past few months. The active manager has been luring new cash by the billions after high-profile bets on the likes of Tesla Inc. and Bitcoin made its ETFs among the best performing of 2020. The Ark Innovation ETF (ARKK) became the largest active ETF in the world last month, while Ark itself entered the top 10 issuers.
The new fund from New York-based Ark will primarily track U.S. and global companies engaged in space exploration and innovation, according to its filing with the Securities and Exchange Commission.
“Cathie Wood has the Midas Touch right now,” said Nate Geraci, president of investment-advisory firm the ETF Store. “Investors assume anything she’s associated with will turn to gold.”
This article was provided by Bloomberg News.