21REPUBLICANS ARE ABOUT
to implement a Donald
Trump loyalty test, the latest
move inside its central party
committee to gauge fealty
to the de facto leader. The
test could potentially kill the
next presidential nominee’s
chance to reach voters with a
direct contrast to the Demo-
crats’ pick.
The Republican National
Committee (RNC) is poised
to amend its rules during
a February meeting to de-
mand that any contend-
ers for the presidential
nomination pledge to skip
general-election debates
sponsored by the nonparti-
san Commission on Presi-
dential Debates. The group
has organized the televised
sessions dating from 1988
and has endured Trump’s
scorn since 2016 for its
perceived biases.
The test goes well beyond
just the hopefuls. Each of
the 168 members of the RNC
will have to navigate whether
they prioritize tradition orThe D.C. Brief
By Philip Elliott
WASHINGTON CORRESPONDENTA podium at Hofstra University, the site of a 2016 presidential debateThe Leadership Brief
By Belinda Luscombe
EDITOR AT LARGEFor more insights from
Washington, sign up for
TIME’s politics newsletter
at time.com/theDCbriefCathie Wood is CEO and
founder of ARK Invest, a founder of ARK Invest, a
controversial investment controversial investment
fund known for its heavy fund known for its heavy
spending in technology. spending in technology.
Her fl agship tech fund’s Her fl agship tech fund’s
bumpy ride—up 156% bumpy ride—up 156%
in 2020, down 23.5% in 2020, down 23.5%
in 2021— has not made in 2021— has not made
her doubt her strategy.her doubt her strategy.
Did you learn anything Did you learn anything
from your fund’s not-so-from your fund’s not-so-
good performance in good performance in
2021? 2021? In 2020 the corona-In 2020 the corona-
virus accelerated the virus accelerated the
pace of innovation and the pace of innovation and the
uptake of innovation. Then uptake of innovation. Then
we had the rotation into we had the rotation into
cyclical stock, meaning out cyclical stock, meaning out
of some of our technology- of some of our technology-
oriented stocks and into oriented stocks and into
energy, fi nancial services, energy, fi nancial services,
materials and industrials. materials and industrials.
But we have a fi ve-year But we have a fi ve-year
investment time horizon, investment time horizon,
so we take this in stride. so we take this in stride.
What is the purpose of What is the purpose of
your fund’s emphasis on your fund’s emphasis on
transparency? transparency? After the After the
2008 market meltdown, 2008 market meltdown,
the fi nancial- the fi nancial- services services
industry lost a lot of trust. industry lost a lot of trust.
We’re trying to be part of We’re trying to be part of
bringing it back. I started bringing it back. I started
ARK because I saw such ARK because I saw such
opportunities in the inno-opportunities in the inno-
vation space in the public vation space in the public
equity markets. Retail equity markets. Retail
investors felt left out of investors felt left out of
the biggest opportunities, the biggest opportunities,
which seemed to only be which seemed to only be
in the private markets. We in the private markets. We
are bringing transparency are bringing transparency
and democratization into and democratization into
investing in innovation.investing in innovation.
You’re a big investor in You’re a big investor in
artifi cial intelligence. artifi cial intelligence.
Will AI ever put the Will AI ever put the
fi nancial services and fi nancial services and
analysis businesses out analysis businesses out
of work? of work? I think the way I think the way
our business got off track our business got off track
is that it only considered is that it only considered
quantitative strategies quantitative strategies
to be scalable, because to be scalable, because
you could put a computer you could put a computer
on them, and then charge on them, and then charge
a fee. Those days are a fee. Those days are
ending. Any position that ending. Any position that
involves human relation-involves human relation-
ships—like handling ships—like handling
people’s money—is people’s money—is
going to be very diffi cult going to be very diffi cult
to displace to displace ..One of the reasons you One of the reasons you
and your success draw and your success draw
attention is that there attention is that there
are so few women in are so few women in
fi nancial services at fi nancial services at
your level. Why is this? your level. Why is this?
I’ve been in the business I’ve been in the business
for 44 years. I’ve seen for 44 years. I’ve seen
this time and again, when this time and again, when
we go through a bear we go through a bear
market, a lot of women market, a lot of women
drop out. I think our drop out. I think our
industry is wonderful for industry is wonderful for
women, if they can move women, if they can move
into a situation where into a situation where
their performance is their performance is
measured objectively. measured objectively.Anything worrying Anything worrying
you about this year? you about this year?
Businesses might Businesses might
have scrambled a little have scrambled a little
too much; I think we’ll too much; I think we’ll
see inventory issues. see inventory issues.
Consumers are upset Consumers are upset
at infl ation and are going at infl ation and are going
to cut back. to cut back.Trump’s grievances—and
then face the consequences.
Those little-known party
insiders have tremendous
power. The RNC has fairly
unilateral control over who
gets to debate during the
primaries and what news
organizations get to ask the
questions. An RNC that
puts its thumb on the scales
can essentially shut out
unfavored candidates—or
eff ectively throw the nomi-
nation to Trump if its mem-
bers decide to be shameless.
The party’s cardinals are
poised to make a move that
is hardly strategic. It is the
opposite of building the
Republican brand or per-
suading voters. It is an emo-
tional play aimed at a party
of one. But at least for the
moment, that party is the
most important factor in
the modern GOP.Sign up for weekly conversations with the world’s
most infl uential leaders at most infl uential leaders at time.com/leadershiptime.com/leadership