Cathie Wood's flagship ARK ETF is having one of its strongest months ever as traders bet high inflation is in the rear view

• Cathie Wood's Ark Innovation ETF is up 26% in the past month.
• ARKK's price is more than 75% off from its record high after two years of weak performance for the fund.
• Signals that inflation may be cooling have left traders open to tech-heavy bets like ARKK.

Cathie Wood's Ark Investment Management is having a killer start to the year, with all eight of the firm's exchange-traded funds on track to gain in January. 

In particular, the famed money manger's flagship Ark Innovation ETF (ARKK) may have one of its strongest monthly performances ever. ARKK is up 26% in the past month, trading at $38 on Tuesday.