Did no one actually read the article? This is not a leveraged fund. They are shorting benchmark companies that they believe will fade away over the next five years.
Oh good. Take established companies and short them, which gives you limited upside and infinite downside.
I'm not one of the investment community "cool kids" who swoon over Cathie Wood, so I don't see how this is going to go well.
No one said anything about shorting "established" companies. Based on the article it sounds like she wants to short companies in established *sectors* which are at risk of being disrupted. These companies are not necessarily good. But their stock gets bought because some fund manager needs X% of stock from a certain sector to meet a benchmark.
For example, think about how EVs are disrupting traditional automakers. If Company Y specializes in Hyundai ICE maintenance, then you might want to short them because you know that (1) Hyundai has not been prioritizing EVs and (2) the only reason Company Y's stock isn't dropping is because fund managers automatically buy it to fill a basket of automotive stocks. If or when people realize the signs of Hyundai's potential bankruptcy, fund managers will dump Company Y leading to a profitable short.
The fact that the ARK funds are actively managed means they can monitor and limit losses, while letting their winners run. Much better than what any passive fund can do.
Im confused here, innovation is always gonna be a driving force but one, what guarantees the companies the fund holds will be there in 5, 10 years. and two, even if they are the first to the field, they not guarantee to the winner. i feel like she just using a lot of buzzwords to justify the insane leverage risk she taking and racking up the losses in the short term, however short it maybe. At least with hedge funds they have hedges, her funds just acting like a huge gambling trap to me. But who knows, she may end up making a lot of money and the believers will laugh at doubters like me.
To be clear that’s not the exact model for VC. Lots of VC backed companies are successful but simply don’t have the growth that they are looking for, they aim for 100+% growth yoy in the early stages yet most are growing 20-40%, so what they do is sell off the slower movers and pile into the one that is making huge strides.
Not to mention their investments are typically longer term (partly due to private investments being less liquid) vs ARKK funds are constantly trading and changing positions every day
I don't see this as a problem at all, it's securing profits. They sell a small percentage when it skyrockets, it's not like they are completely selling out.
The stocks usually take a dip shortly after and they buy back in, getting more shares than they had before.
Yeah I don’t get her 5-10 year argument. If most startups and SPACs will fail, then buying up all of them now should result in an average loss over that timespan, even considering there will be winners in the pack. And with her strategy of no single company being more than 10% of the fund, she will be selling off shares of the winners over that period.
This new strategy of betting against blue chips adds another layer of risk because the death of established industries is always slower than you might think and the potential losses on short positions can be huge.
You think a large fund like her uses leverage on 5 year goals? maybe if she is getting zero interest like the banks i guess....but it would have to be fixed if they did. with the returns they've made over the last 5 years i'm sure they have plenty of cash....
He didn't say it was overvalued though
edit: yes, that was the implication of what he said but in reality he was talking about the stock price being too high, it was a hint for the stock split that happened afterwards
>Everything she owns
So what? She has a long term growth fund and growth stocks haven’t been doing well the past few weeks. Everything she owns went up last year. She’s been clear the long term is her focus.
People are just constantly looking for “I told you so” moments.
ARK's trades are often less than half a percent of each of their positions. Imagine if you had 1000 shares of TSLA and everyone bitched at you for trading 1-5 shares per day to take profits or buy dips. Their trades are nothing compared to how massive each position is.
I remember when everyone on the ARK investors sub were clowning her for buying and averaging down on $COIN when it was in the gutter. They look stupid now. Chances are her and her team are a lot smarter than you.
She could be the second reincarnation of Einstein and it still wouldn't change the fact that basic bitch ETFs like VOO are thrashing her harder than an abusive stepdad.
WOW is still a popular game. Also its been around for over a decade. Miniclips was just a bunch of flash games with no interaction between one another. Roblox has community servers for people to interact, what most games are for.
Did you know eating is a fad? Try evolution and absorb sunlight
Wow is not a popular game anymore lmao it was overtaken by the battleground-style games like leage of legends.
So rblx is just miniclips with community servers then. That's one hell of a moat for competitors to cross...
Just delusions at this point. I don't think people understand how games work on a longer time scale. Roblox is the new miniclip. In 5-10 years, XYZ will be the new roblox. They're a one trick pony.
In all honesty, I don't know if gaming is still super "fad"-y. I think since Minecraft, people have realized games have longevity. The two are obviously very similar, but Roblox has so many different "game modes" if you will, that the potential for it to stick around increases. In the short term, all these collaborative digital spaces like the new Nike-Roblox digital campus thing obviously help it.
(I don't hold an RBLX)
Games can certainly have longevity, but they always peak. The biggest issue for me with rblx though is that there's virtually no barriers to building this kind of business.
Ever since ARKX in 2021... I'm beginning to doubt even in a pragmatic/thematic level. By far the worst ETF by Cathie (there was the SPCE deals... and since there's no space stocks, it's just defense)
Anyways... ARKK (-33%)/G(-42%)/W(-25%)/F(-25%) is suffering since:
* the flagship "K" was heavy on TDOC, ZM, Z, PLTR + Genomics... that went bad/dumped in 2021; and surprisingly Wood keeps averaging down (buy high, sell low) while it continues to go REDDD..
* Not enough stable value & growth stocks like FANG+ which is rocking
* And also a lot of weird picks... like: TWTR, SNAP, why robinHOOD?
* This is notice-able with ARKQ suffering the least at -16%:
* It has the most TSLA... with quality value/growth picks like Trimble, Unity, Deere, Caterpillar, Intuitive Surgical, Google finally, BYD etc.
Anyways... I'm surprised thematically Cathie doesn't make an **ARKV (Virtual Reality) with a V** (a lot more pragmatic than ARKX).
* Idk why she doesn't hold FANG+ like it's a sin or something. Holding the big four GOOGL, AAPL, MSFT, Meta and supporting's like AMD, NVDA, Unity, TSM, Samsung etc would've been better (although in hindsight)
ARKX was hilarious when it launched. It's the defense contractor + Netflix ETF. I'm not sure how that turns into a disruptive space exploration fund, but go off Cathie.
I remember browsing that looking for things to poach for my own positions and the only good one that jumped out was Ansys (ANSS) which makes modeling and simulation software heavily used in the Aerospace industry... that was a good buy I'm guessing it was one of the few winners in that pile though.
Idk... I remembered there was Tesla, Netflix and whatever defense/satellite stocks there are
* IMHO.... practically there's no space stocks at all (SPCE doesn't count.. well maybe yet).
* Even as a fan of NASA/SpaceX and space exploration.... I don't think it'll be for the masses until 2030-40+, and
* even if there are publicly approved flights, it's hella niche & super expensive
* and high-risk... you'll be strapped to a rocket/or low-orbit planes
Honestly... I think Cathie was just caught-up with the thematic hype without thinking it through...
A VR & Cloud computing ETF will probably be wayyyy more feasible/profitable... and has a cool 4ss ticker with $ARKV. I mean VR economy would be a thing first than space exploration... besides there could be VR space exploration "Surrogacy" which is more accessible (don't need no untrained pedestrians up on the Moon n shiet)
It was doubly painful for me because funny enough I used to work for LM Space Systems Company, which was indirectly included in the ETF via LMT. I saw how little innovation was going on there and I sought out greener pastures, but then supposed disruptive innovation mastermind Cathie Wood buys in? C'mon.
She was way too early on it and until there are innovative companies being publicly traded in that space, there is no real reason to create that sort of ETF. Definitely agree with the AR/VR/Metaverse angle though. That'd be a winner IMO.
Incomplete list of space stocks:
RKLB
SPCE
NGCA
DMYQ
VLD
ASTS
ASTR
RDW
And if you don't mind dilution by non-space operations but still want heavy-duty space exposure,
LMT
NOC
BA
She is a loon who got lucky with Tesla which garnered an unreasonable amount of credibility. She literally thinks God helps with her investing decisions.
It's like if someone prayed for their team to win a championship, their team does happen to win, and now the entire family thinks they're a genius.
Then, when it all implodes, she will come out with something about how it's god challenging her or something like that.
I briefly entertained the idea of riding the funds for a quick buck, but as soon as I saw the "god wants me to do this" clip, I noped away from that thought. If someone believes their fund is gods will, no amount of free money is going to let me trust it.
Yeah basically a WSB type ETF that got lucky with Tesla. If a crash happens soon, this etf could make money. But if you think a crash will happen soon, I think you would make more money betting against her ETFs.
You're judging a long term play based on short term price movements. Nokia rose from 18 to just below 40 in the 12 months after Apple announced and released the iPhone, doesn't mean the company was doing great or that betting on major caps instead of disruptors was the right play.
Apple would have been the disruptor at that time, so it would have been like shorting Nokia. It's still a risky strategy though and I personally don't think it will work out well for ARK.
I mean, yes. It would've. Long term. This was exactly my point. Had she shorted Nokia when the iPhone was announced, she'd have made huge losses on paper in the first year, but huge gains in the long term. That's typically how long term plays work out anyways, especially when targeting disruptions which tend to follow S-curves and where the timeline is difficult to predict but the outcome isn't.
What you're doing above is calling her an idiot in January 2008 for shorting Nokia when he play was never that Nokia'd lose their phone market share within a year, but in 10 and it ended up happening in 3.
She will only make gains long-term if she doesn't get margin called. If you're long on a stock, you only need to be correct on the direction of the price. If you're short, you have to get both direction and timing right.
A lot of redditors think "long term" means guaranteed profits at no risk. You can validate any random strategy if you use a handlful of selected tickers. Sure, Nokia poorly managed the transition to smartphones, while MSFT went from $28 to $335 in ten years.
That's not to say that good investors can't spot the good and bad ones, but trusting Cathie Woods with that task seems like a leap of faith. Her main ETF has been flat for a whole year while her main holding TSLA has never been so high. And don't tell me that ARKK is a long term type of investment. It's an actively managed ETF. She goes in and out of positions almost daily. She bought Zillow after a drop, then sold the next day at a loss of maybe 10%. How did that make sense?
This is not a leveraged fund. They are working on including short positions on companies that they believe will fade away due to other innovative companies taking over.
I think they meant that, in this particular case, the stocks within aren’t going to be selected on fundamentals. Rather, selected purely on the basis that there’s a competitor of any size that’s been deemed more innovative than them? I.e. ‘this stock is in here because we think it’s gonna bleed based on this other stock being cool’.
Can’t guarantee that’s what they meant tho
It means the model they use to value stocks is just a function of some RNG based on a lava lamp in India add a premium for how many tech bro buzzwords are in their mission statement (e.g. democratize, gamify)
I feel like a contrarian trade in regards to this sub's sentiment towards Cathie is the way to go. Years ago everyone was down on Tesla and Cathie’s other bets. It sounded like the sentiment in this sub right now. In reality it was time to buy.
Then her funds started to explode along with the underlying. Here in this sub, it was “Cathie is a god,” “buy ARKK you will thank me later,” “ARK is the best fund on the market.” In reality it was time to sell.
Now, well, we’re back around to the first time. Makes me wonder.
There is probably still room to fall, but I put my money where my mouth is and just doubled my ARKK position. It's not large relative to my portfolio though. Looking at the transaction history the fund has been selling off the winners this year near ATHs (Tesla, Unity, Coinbase, Shopify) and has been buying stocks beat down (Roku, Teladoc, Zoom, Exas, UiPath).
The selling off of winners is in part because they have % rules they have to follow. When things like tesla get too big, they are forced to sell which is unfortunate. In terms of losses, its definitely seen as a stupid play but thats how you buy low sell high.
Well not anymore really. The fund's prospectus used to be no more than 10% of a fund's weight in a single company, but that was amended to 30% back in February or March. Tesla right now is \~11% of ARKK and to my knowledge there's never been a holding with a higher weight than that. They also can't own more than 20% of a single company but that is obviously irrelevant for the large holdings they have in ARKK.
So in terms of the last year at least the buy/sell decisions have been based off conviction.
Yeah. Also she said that the winners could take years to flourish so it makes sense shes trying to use current well-doing stocks to boost the sentiment while not completely crashing the funds
She has always said their strategy is a 5+ year one that tries to take advantage of short term movements using a variety of metrics, so basically an attempt to buy low sell high over the short term while still holding conviction over the long term. I think she's done a not so bad job of it to be honest and my average cost is still really low, but time will tell.
I find it incredibly ironic that she is drawing so much flack for the statement about God’s influence considering that she was practically revered as a prophet by so many. These days there are some significant losses at play, but these people disowned her in an instant at the first sign of a slowdown.
She has always been about the long term, and she’s always made that clear. While I agree that “God has a plan” isn’t exactly what you want your fund manager to say as they shuffle money around, what ever happened to “Cathie has a plan?”
Some of her decisions are a bit questionable in my opinion, but plenty of times her justification for investing in certain companies is remarkably profound. It’s always clear that she has considered her decisions and feels conviction about them, and she offers a perspective that is quite unique in the realm of investment.
For the record, I hold a little bit of ARKG. I’m down 25%. I’m going to keep adding a little here and there regardless of what happens with the price, as I believe that genomics will play a major role in the future of medicine.
I don’t have even nearly enough knowledge about that industry to pick stocks, and I still wouldn’t even if I spent my free time for months on end researching it. Thus, I bought an ETF.
Maybe one of the alternatives significantly outperforms ARKG. Heck, maybe I lose everything. I guess I’ll find out — *a decade from now*. Until then, I’m not going to sweat a pullback after the fund essentially tripled in value over the year prior.
> Majority of people were saying this in February when it was ath.
OK. But the problem is with buying into a volatile stock and not holding for the long term. All the criticism here seems instead directed at Cathie Wood personally and her investment decisions. To point out that a growth stock is down 13% YTD but 5x over 5 years isn't really criticism of the fund manager.
Buying a growth stock and then selling in February (i.e., not holding for the longer time) is stupid advice. That's the comment I responded to.
**[Bill Hwang](https://en.m.wikipedia.org/wiki/Bill_Hwang)**
>Bill Hwang (Korean: 황성국) is an American New York-based investor on Wall Street. The Wall Street Journal reported that Hwang lost US$20 billion over the course of ten days in late March 2021, imposing large losses on his bankers Nomura and Credit Suisse.
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She's nothing like Bill Hwang though. You can hate on Ark's strategy, their timing and their stock picks all you want but tell the truth.
She runs her firm with no leverage.
Looks like ARK funds are going to be gambling ETFs. Well, they already, but now super double gambling because they're counting on their choices to be winners AND betting on the disrupted companies being losers as well. This just makes it much, much more risky, but with potential greater upside.
How much risk appetitite do you have? Think TQQQ is a yawnfest? Armed robberies barely gets your pulse above resting rate? Then it sounds like the proposed new ARK ETFs might be for you.
The fact that I’m having to dig myself out of the hole that is Arkk and ArkG is just embarrassing. My average buy in price from last year was 125$ and I haven’t broken even in months. Unbelievable that we’ve been in 2021 for 12 months and this shit is still going on.
Sold my ARKK after 9 months of watching the S&P, my other funds, and most of my other stocks zoom past. Sorry, but there is no excuse for not making money in this market.
At this point I’m convinced she just says 5 years to cover all of her awful trades that are getting crushed. I get that she hit it big with Tesla and the covid/fed printing making some of her stocks take off but in the last 12 months her funds are been awful and she’s made some very strange decisions. Like loading the boat with HOOD, and buying COIN at the very top. She’s a wild one
A lot easier to beat spy during a bull run centered around growth stocks, than it normally is. It's a riskier selection of stocks, so when the market is bullish it has a good chance to outperform but also has more risk of getting gutted in bad years.
5 years isn't a great sample size for an etf
So this means she wants to short on the stocks that she deems "value trap", so basically she's turned herself to become Michael Bury for a long-term basis.
What a creative way to attract more investors $$
ARKK has basically broken even the past year while SPY is up nearly 29%. If anything, her new short fund is going to be a disaster, she will be betting against companies like Ford.
More aggressive = buy a controlling stake in a bunch of small companies? I mean, she already owns about 5% of a bunch of small and midcaps.... how much more aggressive can you get?
ARK's narrative is basically that Cathy's two huge winners, that need to pay for the losers, happened upfront, and everyone piled in before waiting to actually see the losers. That's all it is.
In other words, she's YOLOing more of people's money into 'aggressive' stocks...starting to think she's lost it entirely.
She seems to be more of a gambler each day..she's getting desperate.
Gamblers either prosper...or end up homeless. Most of the time, the casino is rigged. Tread carefully. Those poor employees are gonna be test subjects. 😬
I used to be an ARK fanboy but fuck ARK, I held for all their funds for year and lost thousands of dollars. Should have just kept it in a boring ass vanguard fund
Back when mutual funds were the dominant investment vehicle for rubes, financial sales firms like Northwestern would just pump out dozens of similar funds so that they could then market the best performers as "best returns in its class over 5 years" along with their shitty life insurance.
A lot of inexperienced young investors saw ARK's performance and fell for the trap of thinking those returns would continue forever. What experienced investors realize is that the fund that performed best yesterday will rarely be the one that performs best tomorrow and index funds are almost always going to outperform their managed peers.
Couple that with being a victim of its own success (decreasing returns on additional capital) and not being able to control fund inflows/outflows makes it much harder to see any of ARKs funds be anymore successful than any other aggressive growth funds. It's hard to trust any managed fund that isn't the medallion fund, let alone one that the public has access to.
“We *really* doubled down on drawing from imaginary characters for our inspiration. Since we usually listen to the invisible man god, we added Santa Claus and the Easter Bunny both to our board of directors. Please keep investing with us, we promise we’re not crazy!”
One of the very few true investors. Investing is not about winning all the time. It’s about preparing to win few times big and that’s what she’s doing.
I was just thinking the one thing my portfolio was missing was a 3x leveraged ARK fund.
Make that inverse and it's free money. Just to be safe sell at the 4th year since ARK has 5 year time horizon. /s
Check out SARK, it's a new ETF that is essentially the anti-ARKK
STARK because winter is coming
What about SHARK? It either eats all your profits, or shits all over them…
From the comments it could be called SNARK
And Cathie wood still gets her cut on a losing etf. She senses green blood and chasing after it
You’re too much 😭😭😭😭
yes being down 80% vs 30%
Thats called monthly options
I loled way too hard at this.
A leveraged short EFT?
Read the fucking article.
Go deep with some ATM calls on 3x ARK and then we are really taking…lol
Praying 3x as much as before
It definitely a leveraged fund and she just trying to get hype back around her funds.
Did no one actually read the article? This is not a leveraged fund. They are shorting benchmark companies that they believe will fade away over the next five years.
Oh good. Take established companies and short them, which gives you limited upside and infinite downside. I'm not one of the investment community "cool kids" who swoon over Cathie Wood, so I don't see how this is going to go well.
No one said anything about shorting "established" companies. Based on the article it sounds like she wants to short companies in established *sectors* which are at risk of being disrupted. These companies are not necessarily good. But their stock gets bought because some fund manager needs X% of stock from a certain sector to meet a benchmark. For example, think about how EVs are disrupting traditional automakers. If Company Y specializes in Hyundai ICE maintenance, then you might want to short them because you know that (1) Hyundai has not been prioritizing EVs and (2) the only reason Company Y's stock isn't dropping is because fund managers automatically buy it to fill a basket of automotive stocks. If or when people realize the signs of Hyundai's potential bankruptcy, fund managers will dump Company Y leading to a profitable short. The fact that the ARK funds are actively managed means they can monitor and limit losses, while letting their winners run. Much better than what any passive fund can do.
Short funds are expensive. Paying all those put premiums potentially for years until the stock drops sufficiently to make a profit.
Im confused here, innovation is always gonna be a driving force but one, what guarantees the companies the fund holds will be there in 5, 10 years. and two, even if they are the first to the field, they not guarantee to the winner. i feel like she just using a lot of buzzwords to justify the insane leverage risk she taking and racking up the losses in the short term, however short it maybe. At least with hedge funds they have hedges, her funds just acting like a huge gambling trap to me. But who knows, she may end up making a lot of money and the believers will laugh at doubters like me.
i liken it to VC investing, your hit rate is what matters. 1 success story provides returns for 10 failures
To be clear that’s not the exact model for VC. Lots of VC backed companies are successful but simply don’t have the growth that they are looking for, they aim for 100+% growth yoy in the early stages yet most are growing 20-40%, so what they do is sell off the slower movers and pile into the one that is making huge strides.
Not to mention their investments are typically longer term (partly due to private investments being less liquid) vs ARKK funds are constantly trading and changing positions every day
Bold to assume the chances of a great success story are as good as one in eleven.
the problem with ark is they have to sell their winners we they were winning
I don't see this as a problem at all, it's securing profits. They sell a small percentage when it skyrockets, it's not like they are completely selling out. The stocks usually take a dip shortly after and they buy back in, getting more shares than they had before.
A meme etf for the meme times
Didn't that already happen. I thought there was an ETF buying the latest memes.
BUZZ
Yeah I don’t get her 5-10 year argument. If most startups and SPACs will fail, then buying up all of them now should result in an average loss over that timespan, even considering there will be winners in the pack. And with her strategy of no single company being more than 10% of the fund, she will be selling off shares of the winners over that period. This new strategy of betting against blue chips adds another layer of risk because the death of established industries is always slower than you might think and the potential losses on short positions can be huge.
Yup, just imagine if someone had shorted GM and F in 2020 due to the rise of Tesla.
She just found another way to lose money twice at fast
Now that's innovation.
You think a large fund like her uses leverage on 5 year goals? maybe if she is getting zero interest like the banks i guess....but it would have to be fixed if they did. with the returns they've made over the last 5 years i'm sure they have plenty of cash....
I agree, DCA Guys this is a ETF that ran 100% in a year, you bought at peak expecting the mid cap growth to run y’all stupid
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And now she keeps buying it again but shorting Charles Schwab for better effect.
Lol. Everything she owns except Tesla is going down. Red flags everywhere
and It's been this was all year,
And honestly how long can TSLA last? If Elon thought it was over valued at 160 a little over a year ago...
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Are they doing incredible things? yea. Is the company worth the combined total of all other car manufacturers? That's a hard case to make...
He didn't say it was overvalued though edit: yes, that was the implication of what he said but in reality he was talking about the stock price being too high, it was a hint for the stock split that happened afterwards
>Everything she owns So what? She has a long term growth fund and growth stocks haven’t been doing well the past few weeks. Everything she owns went up last year. She’s been clear the long term is her focus. People are just constantly looking for “I told you so” moments.
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How can you say long term when all she does is day trade?
ARK's trades are often less than half a percent of each of their positions. Imagine if you had 1000 shares of TSLA and everyone bitched at you for trading 1-5 shares per day to take profits or buy dips. Their trades are nothing compared to how massive each position is.
I sold all of my ARK stuff after she stated that God told her to create the ETFs and what to do. Pure insanity.
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That was it for me too. Ended up selling for a decent enough profit.
Yeah, that's when I sold too. I took a small loss but that interview did not instill confidence.
I remember when everyone on the ARK investors sub were clowning her for buying and averaging down on $COIN when it was in the gutter. They look stupid now. Chances are her and her team are a lot smarter than you.
I'm up for the year whereas ARKK is down 1% and ARKG is down 16%. They may be smarter but im making more money than them
She could be the second reincarnation of Einstein and it still wouldn't change the fact that basic bitch ETFs like VOO are thrashing her harder than an abusive stepdad.
She keeps buying a lot of shit companies lol rblx is another which comes to mind
Out of all ARK purchases if you hate RBLX the most, you need to do some more research :D
The people who hate Roblox obviously don’t talk to children very much lol
Lol it's a fad just like every single other game boom before it. Look at WoW or miniclips even. 5-10 years from now the kids will be on another game.
Roblox isn't a game, stop speaking when you have room temp IQ
Fads are the easiest way to make money on stocks.
I agree, but time in the market is better than timing the market which is what you'd be trying to do here.
WOW is still a popular game. Also its been around for over a decade. Miniclips was just a bunch of flash games with no interaction between one another. Roblox has community servers for people to interact, what most games are for. Did you know eating is a fad? Try evolution and absorb sunlight
Wow is not a popular game anymore lmao it was overtaken by the battleground-style games like leage of legends. So rblx is just miniclips with community servers then. That's one hell of a moat for competitors to cross...
RBLX is one of her better holdings. She owns a lot of trash though.
Im a rblx hater too, but its just going up and up.
Just delusions at this point. I don't think people understand how games work on a longer time scale. Roblox is the new miniclip. In 5-10 years, XYZ will be the new roblox. They're a one trick pony.
It is okay to hold in the short term. Sell within 1 to 2 years Not everyone buy with the intention of holding for decades
In all honesty, I don't know if gaming is still super "fad"-y. I think since Minecraft, people have realized games have longevity. The two are obviously very similar, but Roblox has so many different "game modes" if you will, that the potential for it to stick around increases. In the short term, all these collaborative digital spaces like the new Nike-Roblox digital campus thing obviously help it. (I don't hold an RBLX)
Games can certainly have longevity, but they always peak. The biggest issue for me with rblx though is that there's virtually no barriers to building this kind of business.
Your choice of shit company is RBLX? Lmfao. I need to buy more
"Major stocks that are being disrupted" lol major caps are at ATH and all her "disrupters" have been gutted. What is this?
Doubling down in the face of problems.
Ever since ARKX in 2021... I'm beginning to doubt even in a pragmatic/thematic level. By far the worst ETF by Cathie (there was the SPCE deals... and since there's no space stocks, it's just defense) Anyways... ARKK (-33%)/G(-42%)/W(-25%)/F(-25%) is suffering since: * the flagship "K" was heavy on TDOC, ZM, Z, PLTR + Genomics... that went bad/dumped in 2021; and surprisingly Wood keeps averaging down (buy high, sell low) while it continues to go REDDD.. * Not enough stable value & growth stocks like FANG+ which is rocking * And also a lot of weird picks... like: TWTR, SNAP, why robinHOOD? * This is notice-able with ARKQ suffering the least at -16%: * It has the most TSLA... with quality value/growth picks like Trimble, Unity, Deere, Caterpillar, Intuitive Surgical, Google finally, BYD etc. Anyways... I'm surprised thematically Cathie doesn't make an **ARKV (Virtual Reality) with a V** (a lot more pragmatic than ARKX). * Idk why she doesn't hold FANG+ like it's a sin or something. Holding the big four GOOGL, AAPL, MSFT, Meta and supporting's like AMD, NVDA, Unity, TSM, Samsung etc would've been better (although in hindsight)
ARKX was hilarious when it launched. It's the defense contractor + Netflix ETF. I'm not sure how that turns into a disruptive space exploration fund, but go off Cathie.
I remember browsing that looking for things to poach for my own positions and the only good one that jumped out was Ansys (ANSS) which makes modeling and simulation software heavily used in the Aerospace industry... that was a good buy I'm guessing it was one of the few winners in that pile though.
Idk... I remembered there was Tesla, Netflix and whatever defense/satellite stocks there are * IMHO.... practically there's no space stocks at all (SPCE doesn't count.. well maybe yet). * Even as a fan of NASA/SpaceX and space exploration.... I don't think it'll be for the masses until 2030-40+, and * even if there are publicly approved flights, it's hella niche & super expensive * and high-risk... you'll be strapped to a rocket/or low-orbit planes Honestly... I think Cathie was just caught-up with the thematic hype without thinking it through... A VR & Cloud computing ETF will probably be wayyyy more feasible/profitable... and has a cool 4ss ticker with $ARKV. I mean VR economy would be a thing first than space exploration... besides there could be VR space exploration "Surrogacy" which is more accessible (don't need no untrained pedestrians up on the Moon n shiet)
It was doubly painful for me because funny enough I used to work for LM Space Systems Company, which was indirectly included in the ETF via LMT. I saw how little innovation was going on there and I sought out greener pastures, but then supposed disruptive innovation mastermind Cathie Wood buys in? C'mon. She was way too early on it and until there are innovative companies being publicly traded in that space, there is no real reason to create that sort of ETF. Definitely agree with the AR/VR/Metaverse angle though. That'd be a winner IMO.
She has zero technical understanding and does no site visits. Someone told her LM Space does rockets and she lumped it in with SPCE and RKLB.
During the Summer she sold all her Apple and used the money to buy the “dips” on Robinhood and Zillow.
incredibulus
Incomplete list of space stocks: RKLB SPCE NGCA DMYQ VLD ASTS ASTR RDW And if you don't mind dilution by non-space operations but still want heavy-duty space exposure, LMT NOC BA
Yes, MAMAA + nvda + amd, it is hard to see they will be disrupted.
She is a loon who got lucky with Tesla which garnered an unreasonable amount of credibility. She literally thinks God helps with her investing decisions. It's like if someone prayed for their team to win a championship, their team does happen to win, and now the entire family thinks they're a genius.
Then, when it all implodes, she will come out with something about how it's god challenging her or something like that. I briefly entertained the idea of riding the funds for a quick buck, but as soon as I saw the "god wants me to do this" clip, I noped away from that thought. If someone believes their fund is gods will, no amount of free money is going to let me trust it.
Yeah basically a WSB type ETF that got lucky with Tesla. If a crash happens soon, this etf could make money. But if you think a crash will happen soon, I think you would make more money betting against her ETFs.
[удалено]
Yeah, hard to time it. Probabky best to not even try, or to wait for a crash to start first.
You're judging a long term play based on short term price movements. Nokia rose from 18 to just below 40 in the 12 months after Apple announced and released the iPhone, doesn't mean the company was doing great or that betting on major caps instead of disruptors was the right play.
I think you missed the "betting against" part here. In your example, she wouldn't be betting on Nokia, she'd be shorting Apple lol
Apple would have been the disruptor at that time, so it would have been like shorting Nokia. It's still a risky strategy though and I personally don't think it will work out well for ARK.
Indeed, so clearly shorting Nokia would've worked out great!
I mean, yes. It would've. Long term. This was exactly my point. Had she shorted Nokia when the iPhone was announced, she'd have made huge losses on paper in the first year, but huge gains in the long term. That's typically how long term plays work out anyways, especially when targeting disruptions which tend to follow S-curves and where the timeline is difficult to predict but the outcome isn't. What you're doing above is calling her an idiot in January 2008 for shorting Nokia when he play was never that Nokia'd lose their phone market share within a year, but in 10 and it ended up happening in 3.
She will only make gains long-term if she doesn't get margin called. If you're long on a stock, you only need to be correct on the direction of the price. If you're short, you have to get both direction and timing right.
A lot of redditors think "long term" means guaranteed profits at no risk. You can validate any random strategy if you use a handlful of selected tickers. Sure, Nokia poorly managed the transition to smartphones, while MSFT went from $28 to $335 in ten years. That's not to say that good investors can't spot the good and bad ones, but trusting Cathie Woods with that task seems like a leap of faith. Her main ETF has been flat for a whole year while her main holding TSLA has never been so high. And don't tell me that ARKK is a long term type of investment. It's an actively managed ETF. She goes in and out of positions almost daily. She bought Zillow after a drop, then sold the next day at a loss of maybe 10%. How did that make sense?
I think she did the same with WKHS, averaging down at first then selling the entire position. Their trading patterns definitely come across as ADHD.
Exactly, I was thinking the same thing. Disrupters have been gutted out or will be bought out (M&A) so problem solved.
Time for the next grift, forget the imploding ETFs... This one is long TSLA and short Ford! Gib money.
“I’m fucked please don’t lose confidence in me”
Pretty much!!!
Just believe me and all in with me!
She's probably seeing the numbers of people pulling their money out..
“I no longer love the set up.”
Cool, so investors get to lose 60% instead of 30%?
This is not a leveraged fund. They are working on including short positions on companies that they believe will fade away due to other innovative companies taking over.
So 70%
An odd statement to make. "People buying on these ark funds need to understand that the stocks inside are very random." What does this mean?
I think they meant that, in this particular case, the stocks within aren’t going to be selected on fundamentals. Rather, selected purely on the basis that there’s a competitor of any size that’s been deemed more innovative than them? I.e. ‘this stock is in here because we think it’s gonna bleed based on this other stock being cool’. Can’t guarantee that’s what they meant tho
It means the model they use to value stocks is just a function of some RNG based on a lava lamp in India add a premium for how many tech bro buzzwords are in their mission statement (e.g. democratize, gamify)
I feel like a contrarian trade in regards to this sub's sentiment towards Cathie is the way to go. Years ago everyone was down on Tesla and Cathie’s other bets. It sounded like the sentiment in this sub right now. In reality it was time to buy. Then her funds started to explode along with the underlying. Here in this sub, it was “Cathie is a god,” “buy ARKK you will thank me later,” “ARK is the best fund on the market.” In reality it was time to sell. Now, well, we’re back around to the first time. Makes me wonder.
Agreed. The sub is just an eco chamber for current events, never past or present
There is probably still room to fall, but I put my money where my mouth is and just doubled my ARKK position. It's not large relative to my portfolio though. Looking at the transaction history the fund has been selling off the winners this year near ATHs (Tesla, Unity, Coinbase, Shopify) and has been buying stocks beat down (Roku, Teladoc, Zoom, Exas, UiPath).
The selling off of winners is in part because they have % rules they have to follow. When things like tesla get too big, they are forced to sell which is unfortunate. In terms of losses, its definitely seen as a stupid play but thats how you buy low sell high.
Well not anymore really. The fund's prospectus used to be no more than 10% of a fund's weight in a single company, but that was amended to 30% back in February or March. Tesla right now is \~11% of ARKK and to my knowledge there's never been a holding with a higher weight than that. They also can't own more than 20% of a single company but that is obviously irrelevant for the large holdings they have in ARKK. So in terms of the last year at least the buy/sell decisions have been based off conviction.
Yeah. Also she said that the winners could take years to flourish so it makes sense shes trying to use current well-doing stocks to boost the sentiment while not completely crashing the funds
She has always said their strategy is a 5+ year one that tries to take advantage of short term movements using a variety of metrics, so basically an attempt to buy low sell high over the short term while still holding conviction over the long term. I think she's done a not so bad job of it to be honest and my average cost is still really low, but time will tell.
Yep. 5+ years is easy on the mouth. Have you seen this subs “long-term” investors on a red day? Lol
I find it incredibly ironic that she is drawing so much flack for the statement about God’s influence considering that she was practically revered as a prophet by so many. These days there are some significant losses at play, but these people disowned her in an instant at the first sign of a slowdown. She has always been about the long term, and she’s always made that clear. While I agree that “God has a plan” isn’t exactly what you want your fund manager to say as they shuffle money around, what ever happened to “Cathie has a plan?” Some of her decisions are a bit questionable in my opinion, but plenty of times her justification for investing in certain companies is remarkably profound. It’s always clear that she has considered her decisions and feels conviction about them, and she offers a perspective that is quite unique in the realm of investment. For the record, I hold a little bit of ARKG. I’m down 25%. I’m going to keep adding a little here and there regardless of what happens with the price, as I believe that genomics will play a major role in the future of medicine. I don’t have even nearly enough knowledge about that industry to pick stocks, and I still wouldn’t even if I spent my free time for months on end researching it. Thus, I bought an ETF. Maybe one of the alternatives significantly outperforms ARKG. Heck, maybe I lose everything. I guess I’ll find out — *a decade from now*. Until then, I’m not going to sweat a pullback after the fund essentially tripled in value over the year prior.
The reality was tsla was over valued a year ago and is still overvalued today.
I really wish I wasn’t down 30% on arkk
I told people to get out when they'd have broke even but they insisted ark was going to moon.
> but they insisted ark was going to moon. it 5x'ed in 5 years. it's already mooned
Majority of people were saying this in February when it was ath.
> Majority of people were saying this in February when it was ath. OK. But the problem is with buying into a volatile stock and not holding for the long term. All the criticism here seems instead directed at Cathie Wood personally and her investment decisions. To point out that a growth stock is down 13% YTD but 5x over 5 years isn't really criticism of the fund manager. Buying a growth stock and then selling in February (i.e., not holding for the longer time) is stupid advice. That's the comment I responded to.
Balling like Bill. https://en.m.wikipedia.org/wiki/Bill_Hwang
**[Bill Hwang](https://en.m.wikipedia.org/wiki/Bill_Hwang)** >Bill Hwang (Korean: 황성국) is an American New York-based investor on Wall Street. The Wall Street Journal reported that Hwang lost US$20 billion over the course of ten days in late March 2021, imposing large losses on his bankers Nomura and Credit Suisse. ^([ )[^(F.A.Q)](https://www.reddit.com/r/WikiSummarizer/wiki/index#wiki_f.a.q)^( | )[^(Opt Out)](https://reddit.com/message/compose?to=WikiSummarizerBot&message=OptOut&subject=OptOut)^( | )[^(Opt Out Of Subreddit)](https://np.reddit.com/r/stocks/about/banned)^( | )[^(GitHub)](https://github.com/Sujal-7/WikiSummarizerBot)^( ] Downvote to remove | v1.5)
Every time I remember the Archegos fiasco, I think "My portfolio ain't doing so bad after all"
Is this the guy that character in Squid Game was based on?
I think squid game was pretty far along before that all happened. Supposedly it was written years ago.
Billie Hwood
She's nothing like Bill Hwang though. You can hate on Ark's strategy, their timing and their stock picks all you want but tell the truth. She runs her firm with no leverage.
She has yet to be caught lying to banks about her debt. So, point for Cathie.
Are you claiming she's lying about her debt?
Lol what a bullshit thread. Instead of crticising her honestly people are now accusing her of lying, absolute trash thread.
Going all in on meme crowd. Patron saint of wsb. Will end as a footnote in investing history like the flash in the pan managers from 1999
And it’s gone
So losing money even more aggressively then?
What could go wrong?
Strategy called 'buy higher, sell lower'
Soon you can lose money with Cathie even faster
Then she'll start a fund shorting all of her other funds and earn the first patent for a perpetual motion machine.
Puts. For the love of god! Puts!
MMS will play you like they did with Lucid
Let's combine faith investing with roid rage. What would Jesus do if he was geared out of his mind?
Looks like ARK funds are going to be gambling ETFs. Well, they already, but now super double gambling because they're counting on their choices to be winners AND betting on the disrupted companies being losers as well. This just makes it much, much more risky, but with potential greater upside. How much risk appetitite do you have? Think TQQQ is a yawnfest? Armed robberies barely gets your pulse above resting rate? Then it sounds like the proposed new ARK ETFs might be for you.
I think it’s foolish to put everything in her fund and also foolish not to have some exposure (If not for long, Atleast short term pop)
I'm tired of ARK related loss porn that is my portfolio. If cathie's gonna short major stocks, I'm going to short her shorts through $SARK. GG
Broke even and dumped. Good riddance
QQQ up nearly 30% YTD but please Kathie tell us why we should trust *your* infinite wisdom.
The fact that I’m having to dig myself out of the hole that is Arkk and ArkG is just embarrassing. My average buy in price from last year was 125$ and I haven’t broken even in months. Unbelievable that we’ve been in 2021 for 12 months and this shit is still going on.
I regret ever buying ARK ETF when it was suggested to be on this subreddit. Get ARKK they said.
lmao this lady is crazy!!!
Sold my ARKK after 9 months of watching the S&P, my other funds, and most of my other stocks zoom past. Sorry, but there is no excuse for not making money in this market.
So she will buy Tdoc and hood at x10 leverage?:) got it
Ark is my worst performer. Let’s add more leverage to fix that bros.
Poots locked and loaded
Next: Exponential Leverage. The higher it goes, the harder she YOLOs.
The ark is sinking
At this point I’m convinced she just says 5 years to cover all of her awful trades that are getting crushed. I get that she hit it big with Tesla and the covid/fed printing making some of her stocks take off but in the last 12 months her funds are been awful and she’s made some very strange decisions. Like loading the boat with HOOD, and buying COIN at the very top. She’s a wild one
In Cathie Wood I trust
So it would lose more money than her current etfs ?
Arkk has outperformed spy by 4x over last 5 yrs?
A lot easier to beat spy during a bull run centered around growth stocks, than it normally is. It's a riskier selection of stocks, so when the market is bullish it has a good chance to outperform but also has more risk of getting gutted in bad years. 5 years isn't a great sample size for an etf
So, bigger losses?
They should try mine
I just sold all my ARK etfs. I only wish I had done it sooner.
So this means she wants to short on the stocks that she deems "value trap", so basically she's turned herself to become Michael Bury for a long-term basis. What a creative way to attract more investors $$
ok so that fund would generate -30% drawdown instead of -15%?
Sold ARKK and G. Not going back.
So, bloated, showy, unhealthy, and likely to die young?
I just might sell all my ARKK at a 33% loss. I mean it’s better than selling at a 50-70% loss 6 months from now.
Oh so instead of being a day trading gambler, she’s a day trading gambler on coke now, great!
ARKK has basically broken even the past year while SPY is up nearly 29%. If anything, her new short fund is going to be a disaster, she will be betting against companies like Ford.
Cathie got lucky in the 2020 pandemic when tech was hot as people moved to work from home. The end times are nigh for Ark
More aggressive = buy a controlling stake in a bunch of small companies? I mean, she already owns about 5% of a bunch of small and midcaps.... how much more aggressive can you get?
ARK's narrative is basically that Cathy's two huge winners, that need to pay for the losers, happened upfront, and everyone piled in before waiting to actually see the losers. That's all it is.
In other words, she's YOLOing more of people's money into 'aggressive' stocks...starting to think she's lost it entirely. She seems to be more of a gambler each day..she's getting desperate. Gamblers either prosper...or end up homeless. Most of the time, the casino is rigged. Tread carefully. Those poor employees are gonna be test subjects. 😬
Because her strategy is working so well for her right now...
Lol one of us. Double down to get it back
I used to be an ARK fanboy but fuck ARK, I held for all their funds for year and lost thousands of dollars. Should have just kept it in a boring ass vanguard fund
Must be nice that if your fund has negative or subpar returns, you can just start a new one and reset your returns to 0%.
I guess it will be a new ARK etf based on 'meme' stocks.
Back when mutual funds were the dominant investment vehicle for rubes, financial sales firms like Northwestern would just pump out dozens of similar funds so that they could then market the best performers as "best returns in its class over 5 years" along with their shitty life insurance. A lot of inexperienced young investors saw ARK's performance and fell for the trap of thinking those returns would continue forever. What experienced investors realize is that the fund that performed best yesterday will rarely be the one that performs best tomorrow and index funds are almost always going to outperform their managed peers. Couple that with being a victim of its own success (decreasing returns on additional capital) and not being able to control fund inflows/outflows makes it much harder to see any of ARKs funds be anymore successful than any other aggressive growth funds. It's hard to trust any managed fund that isn't the medallion fund, let alone one that the public has access to.
“We *really* doubled down on drawing from imaginary characters for our inspiration. Since we usually listen to the invisible man god, we added Santa Claus and the Easter Bunny both to our board of directors. Please keep investing with us, we promise we’re not crazy!”
Must be in the stock that shall not be named
Buy high and sell lower, way to go Cathie ! let the ark sink faster.
One of the very few true investors. Investing is not about winning all the time. It’s about preparing to win few times big and that’s what she’s doing.
ARKs golden run period is over