Cathie Wood, CEO of Ark Investment Management and known for her focus on U.S.-based disruptive tech like AI and robotics, made a rare move into Chinese equities this week—buying $2.7 million worth of Baidu shares.
The buy comes amid signs of easing U.S.-China trade tensions. After a steep tariff hike by President Trump in April, both countries reached a temporary agreement: U.S. tariffs on Chinese goods will drop to 30% for three months, while China lowered its tariffs on U.S. imports from 125% to 10%.
Wood’s flagship Ark Innovation ETF (ARKK) had a shaky start to the year, underperforming the S&P 500 and Nasdaq through April. However, as of May 16, ARKK showed a slight rebound—up 1.32% year-to-date, just ahead of the S&P’s 1.30%.
Despite her 153% return in 2020, Wood’s long-term performance has drawn criticism. Over the past five years, ARKK delivered an annualized return of just 0.59%, compared to the S&P 500’s 17.57%. The ETF has seen net outflows of $2.01 billion in the past 12 months.
Still, Wood remains optimistic. In a letter to investors on April 30, she predicted that easing tariffs, interest rates, and regulations could spark stronger-than-expected GDP and productivity