is Cathie Wood’s fund in trouble?
- Thread starter gunner_trader
- Start date
ARKK’s Investors Have In Aggregate Lost Money
https://sl-advisors.com/arkks-investors-have-in-aggregate-lost-money
https://sl-advisors.com/arkks-investors-have-in-aggregate-lost-money
True, I actually made a nice trade with PATH to the long side. PATH is a big Cathie Wood holding.
(The Daily Upside)
INVESTMENTS
ARK Investment Sees Spike In Insider Sell-off
Cathie Wood’s ARK Innovation ETF (ARKK) rode the massive wave of speculative tech stocks in 2020, gaining more than 150% during the year with major investments in names like Tesla, Roku, and Zoom.
These days, the "Queen of the bull market" is staring down an uncomfortable reckoning.
And even the c-suite occupants of ARKK's investments are cashing out. In the six months to December, founders and senior managers of companies held by ARKK sold $13.5 billion of stock — and bought just $11 million.
The Ark Of Gravity
Wood and her team specifically target “disruptive innovators” they believe have room to grow, and have a history of funding R&D that increases the pace of innovation. But, as Morningstar’s global ETF research director Ben Johnson recently told the Financial Times, the insider transaction activity “would seem to indicate that Cathie and team have more conviction in these firms than the people running them.”
Worse yet, the insider sell-off comes amid a larger tech slump, sending ARKK's value to its lowest point since the beginning of the pandemic:
• ARK Invest’s flagship fund dropped 9% in the first week of 2022 and is down nearly 50% since its February 2021 peak. In total, the fund is seeing a bigger drop than March 2020’s pandemic-driven market low.
• 36 of ARKK’s 43 holdings are down 40% or more from their 52-week highs, with the median ARKK holding losing 55% of its 52-week high.
Of course, much of the $13.5 billion in insider transactions is attributable to Musk, who unloaded roughly $10.7 billion worth of shares. But even still, the scale of selling to buying has been "far higher" than any period in history according to brokerage firm StoneX.
On balance, ARKK has now had cumulative net inflows of $15.5 billion since launch, but as of late last week, had just $14.4 billion of assets. Translation: the average ARKK investor has seen losses since entering. That's because many investors entered after the 150% run in 2020 — getting a valuable lesson in "past performance doesn't necessarily predict future results."
INVESTMENTS
ARK Investment Sees Spike In Insider Sell-off
Cathie Wood’s ARK Innovation ETF (ARKK) rode the massive wave of speculative tech stocks in 2020, gaining more than 150% during the year with major investments in names like Tesla, Roku, and Zoom.
These days, the "Queen of the bull market" is staring down an uncomfortable reckoning.
And even the c-suite occupants of ARKK's investments are cashing out. In the six months to December, founders and senior managers of companies held by ARKK sold $13.5 billion of stock — and bought just $11 million.
The Ark Of Gravity
Wood and her team specifically target “disruptive innovators” they believe have room to grow, and have a history of funding R&D that increases the pace of innovation. But, as Morningstar’s global ETF research director Ben Johnson recently told the Financial Times, the insider transaction activity “would seem to indicate that Cathie and team have more conviction in these firms than the people running them.”
Worse yet, the insider sell-off comes amid a larger tech slump, sending ARKK's value to its lowest point since the beginning of the pandemic:
• ARK Invest’s flagship fund dropped 9% in the first week of 2022 and is down nearly 50% since its February 2021 peak. In total, the fund is seeing a bigger drop than March 2020’s pandemic-driven market low.
• 36 of ARKK’s 43 holdings are down 40% or more from their 52-week highs, with the median ARKK holding losing 55% of its 52-week high.
Of course, much of the $13.5 billion in insider transactions is attributable to Musk, who unloaded roughly $10.7 billion worth of shares. But even still, the scale of selling to buying has been "far higher" than any period in history according to brokerage firm StoneX.
On balance, ARKK has now had cumulative net inflows of $15.5 billion since launch, but as of late last week, had just $14.4 billion of assets. Translation: the average ARKK investor has seen losses since entering. That's because many investors entered after the 150% run in 2020 — getting a valuable lesson in "past performance doesn't necessarily predict future results."
SARK & ARKK puts still look good. I checked the ARKK Portfolio page on TDA and it states there is no P/E for this fund:
Valuation
Price/Earnings --
Price/Book 5.19
Price/Sales 11.48
Price/Cash Flow 24.41
Dividend Yield 0
As of 12/30/2021
Will she go down as Mary Meeker 2.0? I noticed that crazy lady disappeared after her famous Internet presentations in the late 1990s.
Will it go back to the pre-Covid high of $60.73 on 2/17/2020? At $77.80 it would have to drop about 22% more. YTD QQQ is down 5% and ARKK is down 18% At this rate it will be there if the QQQ drops 6%.
Valuation
Price/Earnings --
Price/Book 5.19
Price/Sales 11.48
Price/Cash Flow 24.41
Dividend Yield 0
As of 12/30/2021
Will she go down as Mary Meeker 2.0? I noticed that crazy lady disappeared after her famous Internet presentations in the late 1990s.
Will it go back to the pre-Covid high of $60.73 on 2/17/2020? At $77.80 it would have to drop about 22% more. YTD QQQ is down 5% and ARKK is down 18% At this rate it will be there if the QQQ drops 6%.
" in 2014, she was listed as the 77th most powerful woman in the world by Forbes."
Some disappearance...
"Meeker's Internet Trends Report is one of the most highly anticipated annual reports for tech investors. She has published it every year since 1995 when she was a tech analyst at Morgan Stanley."
Cathie Wood was buying high beta names that work great in an up market until they dont. When those high beta names go south, they fall hard. As the OP mentioned, she was buying tdoc, zm, dkng, path, and pton on the way up and all the way down by cost averaging. Cost averaging down can be devastating. When I first started, thats certainly how I got hurt as a young trader. I had an excuse, I was young and new to the game.
I dont know how her fund isnt shut down yet.
I dont know how her fund isnt shut down yet.