20VC: ARK Invest's Cathie Wood on Why ARK Has Not Had More Outflows Despite Performance, How the Global Tech Equities Market Will Go From $7Trn to $210Trn in 8-10 Years, The Future for Facebook and How Elon Musk and Jack Dorsey Could Create the Biggest Di
The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch
The Twenty Minute VC
4.4 • 637 Ratings
🗓️ 14 November 2022
⏱️ 47 minutes
🧾️ Download transcript
Summary
Cathie Wood is the CEO & CIO @ ARK Invest, focusing solely on disruptive innovation, primarily in the public equity markets. ARK has become renowned for opening up its research and becoming a ‘sharing economy’ company in the asset management space. Prior to ARK, Cathie spent twelve years at AllianceBernstein as CIO of Global Thematic Strategies where she managed over $5 billion. Cathie joined Alliance Capital from Tupelo Capital Management, a hedge fund she co-founded, which managed $800 million in global thematic strategies. Prior to Tupelo Capital, she worked for 18 years with Jennison Associates LLC as Chief Economist, Portfolio Manager and Director.
In Today's Episode with Cathie Wood We Discuss:
1.) Entry into Hedge Funds at 20:
- How did Cathie get her first role in the world of finance at the tender age of 20?
- What is Cathie running from? What is Cathie running towards?
- What are some of Cathie's biggest lessons from seeing the dot com bust at Tupelo?
- What does Cathie know now that she wishes she had known when she started investing?
2.) Why Benchmarks and Passive Investing are Bad:
- Why does Cathie believe that benchmarks and indexes have become dangerous for consumers?
- Why does Cathie not believe what everyone else does regarding inflation?
- How much of the performance of large-cap tech stocks is tied to the growth of passive investing?
- Why does Cathie think the Fed is making a huge mistake?
3.) Time to Pick Companies:
- Why does Cathie believe that Facebook is emerging as an attractive value stock?
- How does Cathie believe Elon Musk and Jack Dorsey could build the largest universal wallet?
- If Cathie were to put all her money into one of their companies, what would it be?
- Why does Cathie believe Zoom is one of the most misunderstood companies?
4.) Why Venture: Why Now:
- Why did Cathie decide to do a venture fund with ARK now?
- Why did Cathie decide to do a no-carry structure with a higher management fee? How does that align incentives with investors?
- In venture, the asset chooses the capital, how does Cathie analyze why the best founders in the world will pick and work with ARK over other amazing VCs?
- What is the single biggest risk you are underwriting when investing in ARK's venture fund?
Items Mentioned in Today's Episode:
Cathie's Favourite Book: The Emperor of All Maladies: A Biography of Cancer
Transcript
Click on a timestamp to play from that location
| 0:00.0 | innovation is priced in the global markets, public and private, somewhere in the $7 to $8 trillion |
| 0:07.0 | range. We believe that $7 to $8 trillion is going to $210 trillion in the next $8 to $10 |
| 0:14.6 | years. That's a 30-fold increase. I mean, I really, really hope so as a technology investor. That would make me very happy. |
| 0:23.5 | This is the one you've been waiting for. Welcome back. This is 20 VC with me, Harry Stebbings. |
| 0:28.0 | And today, I'm joined by the one and only Kathy Wood, CEO and CIO at ARC invest. With performance |
| 0:34.1 | in the public markets, ARC has had a tough year. and we do not shy away from the hard questions in this one. |
| 0:39.3 | Prior to Arc, Kathy spent 12 years at Alliance Bernstein, a CIO of global thematic strategies, where she managed over $5 billion. |
| 0:47.3 | Kathy joined Alliance Capital from Tupelo Capital Management, a hedge fund she co-founded, which managed $800 million in global thematic strategies. |
| 0:55.6 | And I want to say a huge thank you to Francis Padraza for the intro and question suggestions today. |
| 1:00.3 | Really do so appreciate that. |
| 1:02.1 | But before we move into the episode today, Harvard Management Company is constantly seeking out the next generation of great investors and entrepreneurs. |
| 1:09.9 | HMC has managed Harvard University's Endowment |
| 1:12.5 | for nearly 50 years and was one of the first institutional investors in venture capital. Their experience |
| 1:18.0 | and long-term investment horizon makes some ideal partners to get world-changing ideas on a path to |
| 1:23.6 | viability and success. They work as a true partner, providing insightful perspectives |
| 1:28.3 | to help managers succeed. I personally have had the pleasure of working with the HMC team |
| 1:33.1 | and can say that they are truly exceptional partners and savvy investors. Whether you are launching |
| 1:37.6 | your first fund or your fifth, HMC welcomes the opportunity to partner with both developing |
| 1:42.7 | and establish managers. Have an idea you want to share with both developing and established managers. |
| 1:46.1 | Have an idea you want to share with the team? |
| 1:50.4 | Just send it to venture at hmc.harvard.edu. |
| 1:55.6 | And speaking of amazing partners with HMC there, Mercury is building full stack banking for startups. |
... |
Please login to see the full transcript.
Disclaimer: The podcast and artwork embedded on this page are from The Twenty Minute VC, and are the property of its owner and not affiliated with or endorsed by Tapesearch.
Generated transcripts are the property of The Twenty Minute VC and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.
Copyright © Tapesearch 2025.