Cathie Wood -- the founder and CEO of ARK Invest -- is a widely followed investor on Wall Street thanks to her strategy of investing in disruptive and innovative companies, and this strategy has reaped rich rewards in 2023 as her flagship exchange-traded fund, the ARK Innovation ETF has gained an impressive 60% this year.

ARK Innovation slid big time in 2021 and 2022 as some of the fund's key holdings were hit by the reopening of offices, rising inflation, recession fears, and the subsequent sell-off in tech stocks. However, the fund's impressive comeback in 2023 indicates that Wood's commitment to her strategy could indeed pay off in the long run despite periods of volatility in the short run. Not surprisingly, Wood focuses on an investment timeline of five years, and ARK Innovation ETF's surge in 2023 tells us that investors following her strategy need to be prepared for some volatility if they are to achieve high growth over a longer period.

Wood is now loading up on shares of Palantir Technologies (NYSE: PLTR), a company that's known for building and deploying software platforms for federal agencies, and that some expect will win big from the growing adoption of artificial intelligence (AI) software platforms. It is worth noting that Palantir stock has surged an impressive 177% in 2023. So, the fact that ARK Invest is scooping up the company's shares even after such remarkable gains suggests that Wood is confident of even more upside.

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Source Fool.com