very difficult to identify leaders of tomorrow in highly disruptive industries. Just because she diversifies cross industries does not mean you reduce overall risk -
young analysts in the team
no real risk department / control
very concentrated
big jump over last 12 months
I like some of the picks but still doubt. Take CRISP, great company but it’s valued over 80bn. They will hardly market any product themselves, they will make royalties but still how much could this worth?
For ARK to have an impact on your portfolio , it must be a good share (15-20%). I am not sure I would sleep well with that %. I’d rather do some research and pick some individual stock and hope will do well, knowing it can go to zero. But at this point if I need to gamble, the I prefer lottery or crypto, the upside could be greater
But welcome for people to experiment. I already fell Woodford, I won’t fall victim of Cathie!
Do you mean CRISPR Therapeutics, it’s around 8bn, not 80bn.
Still hefty for what it is, but ja, interesting technology, outcome uncertain, but potentially disruptive.
Based on Q1 filings it seems quite a few asset managers had the same idea.
In other words, the asset managers were so confident in Wood’s ability to handpick stocks that would lose value during a pull back, they took the inverse of her “expertise” instead of just getting short a tech or small cap index
Of course only with the Q2 numbers latter this summer we will know if they still held PUTs today or not.
The fund’s average holding has doubled (or more) in price since last year - and is losing money.
And the DD they provide is more fiction than facts - despite that, they’ve had huge inflows.
So yeah, not unreasonable to assume they would lose during a market pull back.
“There is absolutely zero analytical rigor in [their] forecast. Even a junior analyst fresh out of school could call it for what it is: a big, fuming pile of bullshit.”
“When all is said and done, and the smoke screen will disappear, ARK will be remembered for what it is: a stock pumping operation toward naive retail investors”
I use the Yahoo Finance app (it’s still rather good!) and there was a nice comment this morning, that sums up things pretty well:
The problem in the economy is relentless rampant speculation in unprofitable companies that burn cash, like the entire ARKK portfolio. Cathie is sending retail investors to the slaughterhouse. https://www.openweb.com/share/2BW407ZEC3nH6tDhzV98p7gIU2T
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currently at 63, bought at 110
