Ark Invest’s Cathie Wood teases new crossover fund

Yahoo Finance's Alexandra Semenova discusses the anticipated new fund from Cathie Wood's Ark Invest that will blend assets in the private and public markets.

Video transcript

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- Welcome back to "Yahoo Finance Live," everyone. Cathie Wood doubling down on her conviction in disruptive innovation, but this time with a different approach. In an interview with Bloomberg, the Ark Invest CEO hinting that the firm is planning a new crossover fund. Alexandra Semenova joins us now with the details. Alexandra?

ALEXANDRA SEMENOVA: Well, guys, Cathie Wood is teasing Ark Invest's next move. She said at a tech summit yesterday, speaking to Bloomberg, that her fund will launch a cross-- her platform will fund-- sorry, her platform will launch a crossover fund that invests in both public and private markets, although declining to reveal any more details for regulatory reasons. She did, however, file-- she did, however, put in a filing with the Securities and Exchange Commission earlier this year, indicating that the fund will invest in venture capital firms, startups, as well as public markets.

Wood has repeatedly made a point that private markets are better at valuing disruptive innovation than public markets are. She also noted during the summit that one of the intentions of this fund is to make private markets more accessible to retail investors. She said that they don't have the access to private markets or the capital to invest in them. And this move comes, of course, during tremendous downturn for Ark and for Ark Innovation, and of course for darker times for the venture capital space. So again, Cathie Wood going against the grain.

- Yeah, it was interesting, she talked about also how she felt that ARKK, which we're showing now, was sort of a leading indicator for the private market downturn that we are now starting to see. So that was an interesting part of that sort of public/private market commentary. She also, as she tends to, talked about inflation/deflation also, and the role that inventories are playing. We've been talking a lot about the increase in inventories.

ALEXANDRA SEMENOVA: Yeah, well, she pointed to these bloated inventories. You know, we heard from Target earlier this week. She said that these were a sign that inflation is actually going to ease, again making an unusual comment here, and in contrast with what other people are saying, indicating that this is a concerning sign for the economy. Cathie Wood talking about inflation being on its way down. Before, she talked about deflation as inflation was rising. Always making remarks that kind of are counterintuitive.

- Very social media-friendly.

ALEXANDRA SEMENOVA: Yeah.

- Yeah, exactly. All right, thanks so much, Alex. Appreciate it.