Via her ARK Innovation ETF (NYSEMKT: ARKK), portfolio manager Cathie Wood makes a lot of biotech bets, often on companies that are at the cutting edge of innovation in science and technology. Businesses like that tend to have volatile and temperamental stocks, though investors are lured back time and time again because they offer the possibility of big returns in exchange for significant risks.

Does it make sense to invest in these stocks when the market is dumping them? Cathie Wood is buying the dip on two biotechs in particular, so for her, the answer to that question in this case is a "yes." Let's analyze whether it might make sense for you to follow her purchases, too.

With its shares down by 13% this year, CRISPR Therapeutics (NASDAQ: CRSP) is a certainly a candidate for buying the dip. Among her frequent purchases of it this month, Wood last bought the stock on May 30; it represents 3.6% of the Ark Invest portfolio, making it the eighth-largest investment across all of the related funds.

Continue reading

Source Fool.com