Full disclosure: I own all of Ark's funds and have for over a year. I do not understand why this woman (in particular) and Ark in general gets so much flack for being successful and transparent. It's not like they are buying stocks, spreading the word and then selling- a modern day pump and dump. Their five year track record is enviable- so far, they have been successful for their investors. Not only is Ark transparent about their investments but they publish all their research and hold regular webinars. If you don't believe their rationales make sense, don't buy the ETFs. In fact, go a step further and buy puts. It is just a matter of time before Ark's performance cools and you don't hear about them on Squawk Box. But let's not look for reasons to criticize success.
Hey Ed. I mostly agree with you on this one, I think you put it very well. Given that you can choose to ignore/short the ARK products, calling them out for the equities they include in their ETFs makes no sense and is, I would argue, a classic example of investors being driven by envy and FOMO when making comments. Still, I feel there are a couple of other factors making them get slack, most prominently a total lack of acknowledgement of the blunt fact that their success comes from the strategy being deployed at the right time (fair play to them) and less so from them being a bunch of geniuses. Couple that with half-jokingly mocking anyone who does not agree, some (imo pertinent) liquidity issues which most investors have no clue about and "research reports" that do not include some basic financial statements and ARK slowly becomes the villain in some quarters.
All good points Matei. But remember that they claim to be in this for the long haul. In fact, they are asking investors for a five year time horizon. So they may have jumped on the bandwagon at the right time but they show no signs of jumping off.
Full disclosure: I own all of Ark's funds and have for over a year. I do not understand why this woman (in particular) and Ark in general gets so much flack for being successful and transparent. It's not like they are buying stocks, spreading the word and then selling- a modern day pump and dump. Their five year track record is enviable- so far, they have been successful for their investors. Not only is Ark transparent about their investments but they publish all their research and hold regular webinars. If you don't believe their rationales make sense, don't buy the ETFs. In fact, go a step further and buy puts. It is just a matter of time before Ark's performance cools and you don't hear about them on Squawk Box. But let's not look for reasons to criticize success.
"It's not like they are buying stocks, spreading the word and then selling- a modern day pump and dump."
That's precisely what they're doing.
https://finance.yahoo.com/news/cathie-wood-sells-139-million-120543510.html
Hey Ed. I mostly agree with you on this one, I think you put it very well. Given that you can choose to ignore/short the ARK products, calling them out for the equities they include in their ETFs makes no sense and is, I would argue, a classic example of investors being driven by envy and FOMO when making comments. Still, I feel there are a couple of other factors making them get slack, most prominently a total lack of acknowledgement of the blunt fact that their success comes from the strategy being deployed at the right time (fair play to them) and less so from them being a bunch of geniuses. Couple that with half-jokingly mocking anyone who does not agree, some (imo pertinent) liquidity issues which most investors have no clue about and "research reports" that do not include some basic financial statements and ARK slowly becomes the villain in some quarters.
All good points Matei. But remember that they claim to be in this for the long haul. In fact, they are asking investors for a five year time horizon. So they may have jumped on the bandwagon at the right time but they show no signs of jumping off.
This did not age well...
Can the next one be about the creation of risk by selling liquid securities to buy illiquid ones? How about it leading the market down?
How does Cathy Wood get away with not being on Ark’s SEC filings?