Cathy Woods - ARK Investment

VicBee said:
I followed her down the SKLZ hole... o_O
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Simple formula,

participate in IPO (before retail gets in), >
preach about the thing being new APPL/TSLA (mixed with temporary fame & charisma) , unload position when the thing gets overpriced, 50+ times.

Despite of rev growth, the price few months ago was still spectacular. Probably, had it's full lifetime growth and market share expectancy calculated in by then.

And now retail will look at it and think :

,,Well, it was so high recently, it might get there again once more''

Yes, in ~5 years, maybe. Until a new superstar starts preaching about it once again.

P.s
Good gracious (smiles) Just checked their niche. Games & gamers. That makes things - unpredictable.
 
brass_trader said:
I admire Cathy Woods dont get me wrong. However, I noticed she has been buying a tremendous amount of stock in TDOC, ZM, SKLZ, HOOD, PATH. All of these stocks are trading near 52 week lows.
She has been betting heavy and buying these stocks all the way down. These high valuation speculative stocks can work very well in a bull market but her purchases seem questionable at best. Then again, what do I know.
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The job of these funds is not to time the cycle it's to provide exposure to specialty areas in an easy to trade form and you can time it anyway you like. Never meant to be a large part of anyone's strategy they were always high risk high reward. It's no different then a mining or energy fund they can be the top performers or absolute dogs. I can pick out time periods this year when TSX Energy firms were the worst stocks on the market but for the last year they are the best performing sector even better then any subindex in the US.
 
Nine_Ender said:
The job of these funds is not to time the cycle it's to provide exposure to specialty areas in an easy to trade form and you can time it anyway you like. Never meant to be a large part of anyone's strategy they were always high risk high reward. It's no different then a mining or energy fund they can be the top performers or absolute dogs. I can pick out time periods this year when TSX Energy firms were the worst stocks on the market but for the last year they are the best performing sector even better then any subindex in the US.
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But she is trying to time the markets by going in and out like a ninja
 
traider said:
But she is trying to time the markets by going in and out like a ninja
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Is she though ? Or is she merely targeting a percentage holding in each stock and as the price drops she buys it back up ( or vice versa ) ? Last I looked the main holdings looked similar on a surface check.
 
Nine_Ender said:
Is she though ? Or is she merely targeting a percentage holding in each stock and as the price drops she buys it back up ( or vice versa ) ? Last I looked the main holdings looked similar on a surface check.
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Her turnover of stock holdings is more like an actively managed fund.
 
Pekelo said:
And genius never fail. Oh wait, wrong book title...
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Lol Didn't say they wouldn't but would much rather have experts than not. That being said, LTCM had the Black-Scholes guys, who got a Nobel Prize for it, and the rest were all Ph.Ds, from MIT and Harvard. Smartest guys on the planet and we know how that turned out...bailout in the late 90's. My only point is it'll be cyclical as what made monster returns will likely be laggards going forward. I know a hedge fund guy, Brian Taylor, on LinkedIn, from MN, had top 5 returns on his 2 funds in 2008-09 and by 2016 shut down Pine River as it lost money. Cathy Wood will be fine...Ackman blew up his hedge fund, Gotham Partners, in the early 2000's and that hasn't stopped him.
 
LTCM wasn't a failure, its employees made out like bandits. They just overleveraged it because it was OPM. It's a matter of incentives just like 2008 when many knew that the stuff they held was shit but still traded it because heads I win tails you lose.
 
traider said:
LTCM wasn't a failure, its employees made out like bandits. They just overleveraged it because it was OPM. It's a matter of incentives just like 2008 when many knew that the stuff they held was shit but still traded it because heads I win tails you lose.
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Near Failure of Long-Term Capital Management

https://www.federalreservehistory.org/essays/ltcm-near-failure

"LTCM’s partners and other investors suffered substantial losses when their claim was reduced to 10 percent, on top of the market-driven declines before the recapitalization."
 
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