Cathie Wood, founder and chief of Ark Investment Management, is best known for backing cutting-edge tech like AI and robotics, with most of her investments focused on U.S. companies.

But this week, she made a move in China, picking up $2.7 million worth of a Chinese tech stock as trade tensions between Washington and Beijing showed signs of easing.

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In early April, President Donald Trump raised tariffs on Chinese goods to as high as 145%, setting off tensions between the world’s two biggest economies and triggering a sharp market sell-off.

Last week, the two sides reached a deal in Geneva: the U.S. will cut those tariffs to 30% for the next three months, while China agreed to lower its own duties on U.S. imports to 10% from 125%.

Wood’s funds saw a brief bump after Trump won the presidency last November, but that momentum didn’t go far. Her flagship Ark Innovation ETF  (ARKK)  underperformed both the S&P 500 and Nasdaq Composite through March and April amid broader market volatility.

However, as of May 16, ARKK has started to recover, showing a 1.32% gain for the year, slightly ahead of the S&P 500’s 1.30% gain and outperforming the Nasdaq’s 0.52% loss.

Wood gained a remarkable 153% in 2020, which helped build her reputation and attract loyal investors. Still, her long-term performance has made many others skeptical of her aggressive style.

As of May 16, Ark Innovation ETF, with $5 billion under management, has delivered a five-year annualized return of just 0.59%. In comparison, the S&P 500 has an annualized return of 17.57% over the same period.

Wood’s investment strategy is straightforward: Her Ark ETFs typically buy shares in emerging high-tech companies in fields such as artificial intelligence, blockchain, biomedical technology, and robotics.

Wood says these companies have the potential to reshape industries, but their volatility leads to major fluctuations in Ark funds' values.

Related: Cathie Wood's net worth: The Ark Invest CEO's wealth & income

The Ark Innovation ETF wiped out $7 billion in investor wealth over the 10 years ending in 2024, according to an analysis by Morningstar’s analyst Amy Arnott. That made it the third-biggest wealth destroyer among mutual funds and ETFs in Arnott’s ranking.

Wood says the U.S. is coming out of a three-year “rolling recession” and heading into a productivity-led recovery that could trigger a broader bull market.

In a letter to investors published on April 30, she dismissed predictions of a recession dragging into 2026, as she expects "more clarity on tariffs, taxes, regulations, and interest rates over the next three to six months."