Cathie Wood's Bold Move: 8 Straight Days Of Buying Beam Therapeutics As Stock Soars 14%

Cathie Wood is back in the spotlight, and so is her flagship ARK Innovation ETF ARKK. After a rough year, the fund is showing signs of life—but is this the start of a real comeback, or just another short-lived rally? Investors are split, and the numbers tell an interesting story.

ARKK's Rebound, Skeptics, and the High-Stakes Bet on Innovation

So far this year, ARKK is up 6%—a solid lead over the S&P 500's 2% gain and the Nasdaq's 1% increase. That's a welcome shift after 2024, when ARKK returned 12%—not bad, but nowhere near the S&P 500's 24% surge.

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Looking at the bigger picture, ARKK's longer-term numbers tell a more complicated story. Over the past three years, its annualized return is -5.89%, and its five-year return barely hits 1.03%. By comparison, the S&P 500 has delivered 13.14% and 14.27% over the same periods. 

That's why some investors are still wary—last year, ARKK saw nearly $3 billion in outflows, as Yahoo Finance reports.

Michael Burry, best known for predicting the 2008 financial crisis, has been one of ARKK's loudest critics. He argues that many of its holdings burn through cash at unsustainable rates, and at one point, he even shorted the fund. Burry sees ARKK as too dependent on speculative growth stocks with shaky profitability.

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Morningstar analyst  Robby Greengold has also been skeptical of ARK Invest. Greengold downgraded the ARK Innovation ETF to a negative rating, citing concerns over risk management and portfolio concentration.

He believes the firm lacks structured risk management and relies too much on aggressive forecasting. The strategist outlines his concerns, pointing out that while Wood's strategy is bold, it also lacks a benchmarking strategy.

But Wood isn't backing down. She believes that regulatory rollbacks and technological advancements will fuel long-term innovation, and she's sticking to her guns. On Feb. 20, ARK Invest bought another 170,778 shares of Beam Therapeutics Inc. BEAM, a move that reinforces her faith in genomics and precision medicine. 

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ARK now holds nearly 7.7 million shares of Beam, making up 8.54% of the company's outstanding stock. That investment places Beam as ARK's 20th largest position, per MarketBeat. Not everyone is convinced. Short-sellers warn that biotech companies like Beam face steep financial challenges. 

Jim Chanos, known for spotting overvalued stocks, believes ARK often gets caught up in hype without clear paths to profitability. While ARK supports disruptive innovation, Chanos said many of these companies are valued based on hype rather than fundamentals, making them risky long-term bets.

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