MarketsApr 14, 2024
Cathie Wood loads up on AI companies in her venture fund
Private Equity
Noah Weidner
It’s been a minute since we talked about the infamous Cathie Wood. She’s back in the spotlight, but this time, it’s not about her innovation fund blowing up after a tremendous COVID rally. Instead, she’s making waves with her publicly-traded ARK Venture Fund, which counts over 80% of its holdings exposed to AI.
- Last Friday, ARK announced a 4% stake in OpenAI, making it the fund’s sixth-largest holding, alongside other AI brands like Anthropic, Figure AI, Replit, and X Corp (parent company of X.ai), among other up-and-comers.
- Interestingly, ~10% of the fund is allocated to Anthropic, backed by Amazon, which has developed the AI model Claude, a serious competitor to ChatGPT and Figure, an AI robotics company.
How do I invest? At its 2.75% management fee, the ARK Venture Fund is one of the pricier options out there. Over five years, this premium could eat up more than a tenth of investors’ capital. But for those ecstatic about the AI opportunity, ARK suggests the easiest way to invest in is through the SoFi app.
