ARK's main draw is Cathie Wood, who since founding the firm in 2014 has presided over its tremendous growth while establishing a broad media presence and enthusiastic following. Expansion of the firm's headcount in recent years means more hands on deck to oversee operational and strategic issues, which is a positive. But the thematic-investing specialist's future in 68-year-old Wood's hypothetical absence remains murky. Some at the firm have held titles of associate portfolio manager but haven't clearly shown ambition or ability in this arena. Dovetailing with that key-person risk is the firm's struggle to develop and retain investment team talent.
The firm's seven actively managed exchange-traded funds had roughly $13.5 billion as of March 2024. ARK also has subadvisory or marketing relationships with several firms, including 21Shares for its recently launched bitcoin ETF. In 2023, the firm entered the European market through its acquisition of Rize ETF, a shop with funds whose themes have ranged from petcare to cannabis to sustainability.
Despite dismal results over the past five years, ARK has shown remarkable asset retention but little inclination to prevent future implosions, such as those suffered by its flagship fund ARK Innovation in 2021 and 2022.