(Bloomberg) — It’s been a tricky yr for Cathie Wooden. And her naysayers are piling on.

The founding father of Ark Funding Administration, who may seemingly do no flawed throughout the pandemic run-up in asset values, has seen hovering inflation and elevated rates of interest crush her exchange-traded funds in 2022. The flagship Ark Innovation ETF, as soon as a byword for market-beating returns, has tumbled greater than 65% this yr due to a bruising selloff in tech shares like Tesla Inc. and Zoom Video Communications Inc. 

Wooden’s protection has lengthy been that her agency backs firms poised to vary the world and doesn’t put money into mature ones catering to “short-term traders.”

Dan Loeb, a long-time worth investor, isn’t impressed.

The billionaire, who runs New York-based Third Level, mentioned in a tweet Wednesday a memo from Wooden ought to be utilized in courses to review the “mindset of stonk hodlers” — a time period used to poke enjoyable at on-line merchants who cling to their positions no matter what’s taking place out there. 

Daniel S. Loeb@DanielSLoeb1

Cliff Asness, who earlier this yr derided Wooden for a wildly optimistic financial forecast, was fast to help Loeb.  The top of AQR Capital Administration blamed Wooden in a tweet for the “mania” in the market when charges have been low and shares have been hovering.

Then it was the flip of Jefferies Monetary Group Inc. Chief Government Officer Wealthy Handler, who weighed in on methods to make use of money stream to develop a enterprise versus pump up revenues and valuation.

Wooden’s memo, printed earlier this month, defended her agency’s technique in opposition to criticism that it invests in “idea capital” and firms that may’t flip a revenue. Wooden additionally took goal at companies that add leverage to their stability sheets to pay dividends or repurchase shares with out investing in innovation. 

“The businesses through which we make investments are sacrificing short-term earnings to capitalize on the exponential progress and extremely worthwhile alternatives that plenty of innovation platforms are creating,” she wrote. 

Loeb’s largest inventory holdings prior to now quarter embody Colgate-Palmolive Co., utility PG&E Corp. and conglomerate Danaher Corp.

To contact the writer of this story:

Paulina Cachero in New York at [email protected]