Cathie Wood's fund is losing money and this is how she describes the loss

[Laissez Faire]

Her buzzwords sounded like genius when her funds were making new highs,
'DNA sequencing, Robotics, AI, Blockchain tech, Energy Storage, the Genomic Revolution blah blah blah..'
But now she sounds idiotic when her funds are making new lows 'Our style is out of favour' 'The market is shorting our strategy'

Everyone's a genius in a bull market...?

That's what troubles me the most about this bull market to be honest. So many clueless people who've been rewarded massively and on top of that considers themselves master investors/traders. Usually long only and condescending towards anyone who seems to suggest the market actually can go lower.

To be fair, I do not know much about Cathy Woods, but that quote from JSOP reminded me very much of that guy I talked about. In the face of drawdown he still is able to explain it away.

 

[nitrene]

If you look at her track record from when her fund started up until Feb 2021 it did outperform consistently mid-cap growth and even the QQQ.

The stocks she invests in really do well in a deflationary environment but since the markets are freaked out about inflation there is no way for her stocks to do well based on the DCF model of valuation. I mean her stocks are really just long dated zero coupon bonds where the payoff is much later.

 

[KCalhoun]

I'm long SARK

 

[Snuskpelle]

Don't think it's an unreasonable guess that soon ARKK will be on par with Nasdaq 100 since inception minus expenses.

 

[Specterx]

Wood's big mistake was to sell the winner TSLA (still ultra strong) and double down on garbage.

I wouldn't dance on her grave too soon though. Does it really seem likely we've seen the final Everything Bubble top, as opposed to a temporary pause? A couple weaker-than-expected inflation prints and the liquidity taps will be jammed open once again.

 

[nooby_mcnoob]

A couple weaker-than-expected inflation prints and the liquidity taps will be jammed open once again.

You don't even need that. Any excuse will do. Omicron, liquidity, elections, McDonalds.

 

[deaddog]

Most active fund managers can't outperform index. They suck and its just marketing

And they still get paid for their expertise in managing your money.

 

[deaddog]

To be fair, I do not know much about Cathy Woods, but that quote from JSOP reminded me very much of that guy I talked about. In the face of drawdown he still is able to explain it away.

Nobody lies to themselves more than an investor in a losing position.

 

[d08]

Look at this guy in deep value territory:

 

[volpri]

Economic history is a never-ending series of episodes based on falsehoods and lies, not truths. It represents the path to big money. The object is to recognize the trend whose premise is false, ride that trend and step off before it is discredited. — George Soros