ARK Investment

ARK Investment Management

CATHIE WOOD'S FIRM, ARK Investment Management, or Ark Invest, is one of the hottest asset managers on Wall Street today. Last year alone saw assets under management soar more than tenfold, surging from $3.1 billion to $34.5 billion as a combination of stellar performance and fund inflows ballooned its assets.

The firm's most popular exchange-traded fund is the Ark Innovation ETF (ticker: ARKK), which boasts returns of 150% over the last year.

Wood's other Ark ETFs boast similarly impressive track records; ARK Genomic Revolution ETF (ARKG), for instance, is up 160% in the last year, at the time of this writing.

As of early February, Ark had amassed an AUM of more than $50 billion, as more than $11 billion in inflows hit Wood's funds following a stellar 2020.

In short, Cathie Wood and Ark Invest are the envy of fund managers everywhere. For now.

https://money.usnews.com/investing/...icles/a-big-risk-facing-cathie-woods-ark-etfs

 

Best of luck

 

Well, I started ARK Invest at the age of fifty-seven, so it was quite late in my career. I believe my career is starting all over again, though. I decided to name my company after the Ark of the Covenant, because as I was going through that very difficult period starting in ‘06, where the market, nothing made sense to me, I started reading the One-Year Bible, after I would read the passage for the day, I would then just open it up randomly and say, “God, speak to me. Just show me what to do. Show me Your will. Show me Your way.”

And not every time I did that, but I would say every third or fourth time, I would run into the Ark of the Covenant being taken into the Israelites, taking the Ark of the Covenant into battle before them, because they believed that the presence of God was in the Ark of the Covenant. As I began to get this idea of a firm going and realized that I was fighting this war, I knew I had to name my company “ARK” for Ark of the Covenant.

Surviving and Thriving to Help God’s Children: Victoria Damone & Catherine Wood | Jesus Calling

 

ASIA
bought in December 2018 @ $5.05

REDUCED ( the profits are still running ) @ $12.25 in January 2021

TYPE CPS FRANKED EX-DIV DATE PAY DATE
Interim -- -- 04/01/2021 19/01/2021
Final 11.600 -- 01/07/2020 16/07/2020
Interim 2.990 -- 02/01/2020 17/01/2020

DYOR

never saw a single headline about that

i guess Betashares were too busy selling newer products

the trick is to take some cash risk out when sensible

 

Yes Cathie Wood is the hottest name in funds management at the moment.

As per the great John Bogle and again reinforced in the above Ben Felix video a fund manager has a knock out year, all the capital rushes in to their fund and that’s when things take a turn and the majority of investors didn’t collect the 150% return but capture the drop back down to earth.

Correct me if I am wrong but I believe a number of the ARK funds have not had such a great run so far in 2021 and are in the red. Just in time for that extra $30 billion that came flooding in.

 

well i had never heard of ARK funds ( nor Cathie Woods ) until today

but do remember a theory that a fund can reach a critical mass to be efficient ( too large and it cannot 'right-size' investment moves .. aka 'moves the market in an unhelpful way )

 

This is a worry
Potential Liquidity Issues at ARK Invest

 

concerning , yes

but should it have been predictable to experienced investors YES , also

NORMALLY out-sized returns are created by climbing out on the risk curve ( or every other fund would be getting similar returns )

*** Ms. Wood highlighted that ETFs have different inflow and outflow structures than mutual funds. ETFs grow and shrink as authorized participants create or redeem shares of the ETF. If an ETF trades below NAV, an authorized participant can buy the ETF, generally convert the ETF into the underlying holdings, and then sell the holdings. This helps the ETF trade up to NAV, but it does not change the selling pressure in illiquid names. Read more on the ETF creation/redemption process here and here. ***

this is why i spend at least a week researching any ATF i am likely to buy , the tiniest of details make a BIG difference to your outcomes

to me an ETF with illiquid holdings is contradiction ( an ETF is MEANT to be readily liquid )

but perfectly acceptable in a LIC which is aimed at 5 year plus holds NORMALLY

so you can see i avoid certain styles of ETFs while a similar structure in a LIC would be considered ...a temporary lack of liquidity in a LIC can present an opportunity for the bold

 

Every bull market has a piped piper.

Cathie is very good but as noted above size is always a drag on performance. Just for perspective, ARKK is up 300+% from the start of the current bull market but has only corrected 30% since Jan so far.

The stocks that ARK invests in will correct 2 to 3 or more times the market. If you have a look at the Nasdaq (not the SPY), you'll see why her funds have corrected. Growth stocks are struggling after a monster run (which is normal), and its choppy beneath the surface of the indices. Defensive sectors are starting to perk up. ARK aside, that's a big clue about the broader context.

 

She had a good year and suddenly she's the darling of Wall St.

I find interesiting how much traction she gets.
Every time she spruiks a company like Tesla, it get repeated and rehashed all over the media.
She is constantly seeding media with stories on her holding and how great she is.

That 35B is about 26B.
But she seems to be in the "golden circle" and somehow will always be able to attract funds.

 

Great for those who invested in ARKK at the start of this last run. But for all that extra money that flooded in late last year / early this year after the media caught onto the 150% return story all they get is the 30% correction.

This is a text book example of what Ben Felix talks about in his video and also John Bogle in his books.

 

Sure, people bought and sold all the way up its run. They will be in various states of profit or drawdown based on where they entered and exited. Whether that is a good thing or bad thing is dependent on what their strategy is, and their timeframe.

Many arguments about the merits of a fund, like ARK, isn't about the investment vehicle itself but differences in each person's strategy and timeframe.

 

ARK Invest’s High-Flying Flagship
ETF Rated Neutral by Morningstar

ARK Invest’s High-Flying Flagship ETF Rated Neutral by Morningstar

 

Cathie mustn’t have paid her Morningstar membership fees.

 

maybe they are being positively diplomatic , after the shortcomings of a different family office fund ( the one that ruffled the feathers of four international banks )

that family fund and other recent hedge fund distress , might have Morningstar alarmed if they suspect leveraged investments

 

Looks like Cathie is no Noah. What a surprise.

Reel'em in...

As if she suddenly gained the midas touch after years of bad returns.
She's a golden child though, somehow it will be someone else's fault and just market conditions.
And her career will soon be reborn (if the market crashes) with the Exodus Fund after spending 40 days in a virtual monastry thinking about how to get better returns and spending her millions while servants feed her grapes and fan her with palm trees leaves.

 

Money weighted returns for ARKK will be diabolical….has been great watching this play out in real time.

But “new paradigm” etc lol.

 

They must be just delusional and convinced of their own greatness when they're on the best wagon of the last 30 years when after +160% in one year they think it's just normal and there's no need to take some off the table.
I understand you're not one of these "keep cash" guys, but surely after 160% in a year even you'd be taking some off the table and buy bonds waiting for a reversion.
And smiling for no reason

 

Reality is very few punters were in early enough to get the 160%, with many taking the 50% loss over the last 12 months

On the contrary though, I have a fixed portfolio allocation to both cash and bonds ; 6 years expenses sitting outside super and nil debt.

 

There is a now an ETF that shorts ARK, called SARK:

SARK soars and ARKK capsizes as the Nasdaq sells off | Seeking Alpha