is Cathie Wood’s fund in trouble?

G

gunner_trader

Im sure this topic has been discussed before but she seems to have bought many of her stocks near highs and they are now near 52 week lows. She is also buying all the way down to cost average. She had a great 2020 and made money in TSLA but many of her other holdings are clearly in trouble. Some of her big holdings that she bought near highs and continues to buy are : ZM, TDOC, DKNG, HOOD, SQ, COIN, Z, EXAS.
I do think Z may get a nice bounce but Im not sure as of yet. I actually like Cathie Wood and think she has a lot of guts and I also think she is very smart. That being said, she reminds me of a fund manager who made a killing in 1999 with fiber optic and internet stocks only to go under a year later. I hope Im wrong and she makes it out of this but its looking grim. Am I wrong here?
 
Unfortunately in financial markets you don't get rewarded for having guts and being smart. Those are just 2 of the dozens of necessary ingredients to meet minimum standards. We shall see. My bet is that she will most likely reduce if we see a meaningful bounce in the coming weeks, if we go south from here, which is very likely, then she will indeed be in trouble. Her risk management is virtually non existent and poor risk a management has broken the spine of most every portfolio manager in the past even after a stint of successes. But fear not, the great thing of managing others' funds is that you can close doors, take an extended vacation and resurface with a new story and there will always be willing sheeple that buy into a new theme.

gunner_trader said:
Im sure this topic has been discussed before but she seems to have bought many of her stocks near highs and they are now near 52 week lows. She is also buying all the way down to cost average. She had a great 2020 and made money in TSLA but many of her other holdings are clearly in trouble. Some of her big holdings that she bought near highs and continues to buy are : ZM, TDOC, DKNG, HOOD, SQ, COIN, Z, EXAS.
I do think Z may get a nice bounce but Im not sure as of yet. I actually like Cathie Wood and think she has a lot of guts and I also think she is very smart. That being said, she reminds me of a fund manager who made a killing in 1999 with fiber optic and internet stocks only to go under a year later. I hope Im wrong and she makes it out of this but its looking grim. Am I wrong here?
More...
 
She says she loves it when her fund is down. As it means she will make even higher returns going forward.

At the current price she is going to make 400% return over the next five years.

If her fund halves from current levels, she will just say she is going to make 800% over the next 5 years.

She will always put a positive spin on it.
 
Losing traders, without stop losses, spin.

Price chopped in half - hey it's on sale. Because no one else wants it duh!
Buying stonks is not like buying shoes at DSW.

Returns can now quadruple ...... maaaybe - after half of the clients pulled their money.
 
ARKK did well off the 2020 Covid panic low - but some ETFs did much better:

2020 ETFs Covid Panic lows to 2021 high
ARKK 370% 228 days
SOXL(3x) 1,850% 440 days
FNGU(3x) 1,881% 413 days
LABU(3x) 1,236% 229 days
TECL(3x) 1,068% 428 days
FAS(3x) 875% 405 days
 
I stopped following her newsletter a while ago....

It almost seems as if she is lacking the ability to understand stock behavior and buys heavily into companies based on her faith or it fits the design of the ETF
 
Last edited:
The question would be whether she's adding value over QQQ or if ARKK and QQQ will eventually be on par, expenses excluded.

Stating the obvious, high vol/beta looks smart until it isn't. Selling clients a portfolio of high beta/vol stocks while the going is good and making millions is probably smart, if you can live with yourself.
 
Last edited:
You must log in or register to reply here.
Back
Top