Not going to comment too much. I'm invested in the fund as well.

But the biggest argument against ARK is: If you compare the porfolios of Cathie Wood and a novice investor just starting, you wouldn't find a difference.

TLDR: She lucked out.

ARK is great at marketing but there are other active ETF's that are in the same range of performance.
YOLO ETF which has returned around 150% in a year or even the SoFi Gig Economy ETF which has returned around 120% in a year.

https://advisorshares.com/etfs/yolo/

https://www.sofi.com/invest/etfs/gige/
These all are still short term returns and if you are concerned about tail risk then there is an ETF that caters to that:

https://www.simplify.us/etfs/spd-simplify-u...e-convexity-etf

anyone keen on getting ARK merchandise?
lets group buy to share the shopping cost?

https://ark-invest.store/collections/full-catalog

Can you tell us how much is the shipping cost and how long approximately it would take to ship? I'm interested.

As the cash continues to pour in, Ark already owns 10% or more of at least 24 companies, according to data compiled by Bloomberg. They include Invitae Corp., Cerus Corp., and CRISPR Therapeutics AG.
High Stakes

Ark owns more than 10% of at least 25 companies

“There is risk with so much money flowing into so few,” said James Pillow, managing director at Moors & Cabot Inc. “When the flows stop, or worse yet reverse, one should expect a day of reckoning.”

Two kinds of threats are looming, Peter Garnry of Saxo Bank wrote in a research note this week. The first is Ark’s potential impact on the market. The firm’s huge inflows over the past year have helped fuel a biotech boom, for instance. If assets start to flow out, it could undercut the sector.

The second threat is from the market to Ark. A slide in the companies it is heavily exposed to could force the firm to sell in turn, starting a feedback loop, according to Garnry, Saxo’s head of equity strategy.

ARK is great at marketing but there are other active ETF's that are in the same range of performance.
YOLO ETF which has returned around 150% in a year or even the SoFi Gig Economy ETF which has returned around 120% in a year.

https://advisorshares.com/etfs/yolo/

https://www.sofi.com/invest/etfs/gige/
These all are still short term returns and if you are concerned about tail risk then there is an ETF that caters to that:

https://www.simplify.us/etfs/spd-simplify-u...e-convexity-etf

This SPD fund does not seem to perform as expected (at least did not work during the pre-Nov 2020 draw down before election, and the GME drawdown last month)...or is it only performing during more extreme drawdowns...?

Generally, we are all attracted to the ARK(K,W,etc) due to the impressive returns. Are you expecting this fund to continue outperforming the market or not?

I really like your balanced viewpoint regarding Cathie / ARK.

Personally my viewpoint is nothing good lasts forever, everybody is right once in a while. So, I am only invested in medium to short term with ARKK and with limited exposure.

Meant to protect against extreme drawadowns and not garden variety 10% drawdowns.

Far out of the money put like below only worked during the March drawadown last year.


For Ark, it will last as long as current market dynamics last.

For one, their AUM is ballooning quite rapidly and as Buffet says easier to compound with 1 million than 10 billion.
On the market dynamics, lets take a look at Uber and Palantir.

During Uber's IPO demand wasn't there and not many wanted it above 40 but fast forward two years on, people's minds have changed.

Similar story for Palantir where they were struggling in the secondary market and now it is the talk of the town. Can't complain since I own Palantir but important to understand and plan ahead for changes in market dynamics.

What are your indicators for a change in market dynamics? A shift towards more stable valuations, ie lower demand for tech like uber / palantir? Or a weird unexplained black Swan?

What will your response be, importantly?

I suppose I'm asking you to Crystal ball haha.

To suppose that the value of a common stock is determined by a corporation's earnings discounted by the relevant interest rate and adjusted for the marginal tax rate is to forget that people have burned witches, gone to war on a whim, risen to the defense of Joseph Stalin, and believed Orson Welles when he told them over the radio that the Martians had landed.

Assets in the ETF have slumped by $4.9 billion this week to $23.3 billion, according to data compiled by Bloomberg. The figure doesn’t include flows from Thursday, when ARKK dropped 6.4% for its worst day in almost six months. Investors pulled about $200 million from the fund in Wednesday trading. That brings total weekly outflows to $638 million, on pace to be the worst on record.

“Money that is ‘easy come’ tends to be money that is ‘easy go’,” said Ben Johnson, Morningstar’s global director of ETF research. “You’re going to see similar, if not potentially greater, market impact on the way down, especially given that this is an actively managed ETF and a fully transparent one. The market is hanging on their every move, they’re watching their every move.”
What's moving markets
Start your day with the 5 Things newsletter.
Email
By submitting my information, I agree to the Privacy Policy and Terms of Service and to receive offers and promotions from Bloomberg.

Bearish bets against the ETF continue to grow, with short interest now accounting for more than 4% of available shares, according to data from IHS Markit Ltd.

Please someone release covid 22 so my tech stock can become stonk again to the moon

Have to give ARK credit that they are actually following through with their idea of selling highly liquid large cap assets to buy small cap assets.

Sold Facebook, Amazon, Paypal and TSM among others.

Don't agree with this move since valuations are much move down to earth in those names compared to the small and mid cap names but lets see if this experiment works out.
Price of entry into the ARK universe

This strategy is something new especially for hedge fund. Really interesting to watch.