ARK examplies the Dangers of over investing in individual plays

[George1010]

TI's theory of not overallocating funds to a given company is coming to frution. Read the bold faced text to see how Crazy Cathie Woods investment stategy is

Name another fund manager that sells “Invest In The Future” onesies and “Analyst” hoodies on its website.

Just as unusual as ARK Invest’s marketing has been its performance, growing its assets more quickly than any active exchange-traded fund firm in history. undefinedCathie Wood’s firm went from about $3.5 billion under management across several funds shortly before the pandemic struck to hit the $50 billion mark a year later. But that rapid growth has come back to bite her investors.

Even after a major tumble the past few months, the actual damage isn’t obvious from a longer-term look at her funds’ performance charts. So many investors piled in relatively recently, though, that her actual wealth-creation record is unimpressive. Analysts at Bespoke Investment Group calculate that the money-weighted annualized return of her funds since inception was 5.24% through Monday. That is far less than a steady investment in a plain vanilla S&P 500 index fund.

And ARK Invest’s paper gains have depended on some uncomfortably concentrated positions. There are big, liquid bets such as Tesla , of course, but also smaller companies like Intellia Therapeutics —which had just $58 million of sales last year—that could get hit hard if ARK begins to unload a lot of shares as investor cash leaves the funds. ARK funds owned 16.52% of the company at the end of 2020, more than any other institution by far, according to FactSet. Intellia rallied by 470% from the beginning of 2020 to its peak this January but has since retreated by 27%, giving it a current market cap of around $4.3 billion. Another stock with a similar pattern and ownership is Crispr Therapeutics .

https://www.wsj.com/articles/ark-wasnt- ... od=itp_wsj

[SOL]

This is very true, for long term success Portfolio management is essential. Ark is likely to take a serious beating so in the interim Cathie is probably going to start making all sort of silly claims like Tsla is going to go 5000 or 6K when it's more likely to visit the mid 200 to maybe 300 ranges. She is already making some wild claims regarding the commodities markets.

Never ever put all your eggs in one basket or you might end being a basket case

[Triplethought]

This is very true, for long term success Portfolio management is essential. Ark is likely to take a serious beating so in the interim Cathie is probably going to start making all sort of silly claims like Tsla is going to go 5000 or 6K when it's more likely to visit the mid 200 to maybe 300 ranges. She is already making some wild claims regarding the commodities markets.

Never ever put all your eggs in one basket or you might end being a basket case

Unfortunately I have two 1/3 lots in ARKG (currently 21.73% loss) and one 1/3 lot in ARKQ (currently 11.14% loss). Ironically I viewed these as "safe haven" funds hedging against risky MU individual stock plays.

I don't know whether to dump them and take my losses now (which would be acting out of fear and acting like the masses) or hold on to them with the belief that others are going to be piling out soon. I would lose about 1K if I sell now.

[AstuteShift]

these experts know nothing and hence why they will fail in the long run

The markets are rigged and most of them refuse concepts of MP stating it can’t be this simple

Throughout history, MP has stood the test of time.

Fundamentals and TA soon will just be a relic. Before it was difficult to get good data and charting, only the big players had access. Now everyone and their dog has access, anything that is easily accessible is usually useless in the grand scheme of things, especially if the masses embrace it

MP however, very few understand yet it is simple.

[SOL]

Take a look at the monthly charts of these three ARK funds and decide. Almost all of them have similar patterns.

ARKW Monthly chart




ARKQ Monthly Chart



ARKG Monthly Chart



All the funds are trading in the overbought to extremely overbought ranges.


Almost all the funds have an imbalance when it comes to positions. For example the ARKQ if i am not mistaken, has over 10% of its holdings in TSLA. That is way too much money in a stock that barely makes any money. It's bitcoin investments produced more than sales from cars. Another error is that they invest in illiquid companies.

In general, whether the person is a savvy investor or not, once someone starts to bet such large sums into single companies, it indicates that something is amiss. Now if the companies are trading in the extremely oversold ranges (screaming buy zones) then one could invest a little extra, but investing 4 or 5 Full lots into one play that is asking for trouble.

[Budge]

TI's theory of not overallocating funds to a given company is coming to frution. Read the bold faced text to see how Crazy Cathie Woods investment stategy is

Name another fund manager that sells “Invest In The Future” onesies and “Analyst” hoodies on its website.

Just as unusual as ARK Invest’s marketing has been its performance, growing its assets more quickly than any active exchange-traded fund firm in history. undefinedCathie Wood’s firm went from about $3.5 billion under management across several funds shortly before the pandemic struck to hit the $50 billion mark a year later. But that rapid growth has come back to bite her investors.

Even after a major tumble the past few months, the actual damage isn’t obvious from a longer-term look at her funds’ performance charts. So many investors piled in relatively recently, though, that her actual wealth-creation record is unimpressive. Analysts at Bespoke Investment Group calculate that the money-weighted annualized return of her funds since inception was 5.24% through Monday. That is far less than a steady investment in a plain vanilla S&P 500 index fund.

And ARK Invest’s paper gains have depended on some uncomfortably concentrated positions. There are big, liquid bets such as Tesla , of course, but also smaller companies like Intellia Therapeutics —which had just $58 million of sales last year—that could get hit hard if ARK begins to unload a lot of shares as investor cash leaves the funds. ARK funds owned 16.52% of the company at the end of 2020, more than any other institution by far, according to FactSet. Intellia rallied by 470% from the beginning of 2020 to its peak this January but has since retreated by 27%, giving it a current market cap of around $4.3 billion. Another stock with a similar pattern and ownership is Crispr Therapeutics .

https://www.wsj.com/articles/ark-wasnt- ... od=itp_wsj

I'm tempted to call this fake news or perhaps wishful thinking. There are fund and investment managers out there giving a sigh of relief at the "collapse" of ARK funds and the "comeuppance" of Cathie Wood. They were probably so embarrassed over the last year as their performance came nowhere near ARK's. Can you imagine the calls they had to take from their investors!

Mind you, if I were a fund manager, I'd not mind a few lousy quarters after the year ARK had: six funds over 100%, the lowest 125%. Yes, three of them were stacked with TSLA but the top performing fund was Genomics at 184% with not a TSLA in sight.

So who do WSJ go to for their inciteful expertise for a hit piece? Bespoke Investment Group. Who the fuck are they? Two guys who worked for Lazslo Birinyi and set up their own shop in 2009. By 2019, they had amassed the grand total of $26m AUM. Are you shittin me!! Why are we paying attention to them?!

Some quick calcs, I'll start to be interested when the ARK funds reach:
F-$41, G-$65, K-$87, Q-$58, W-$103, PLNT-$31. Not enough data on X and the political situation too dangerous for IZRL.

[AstuteShift]

Imho I would just buy TQQQ at the dips, and sell at the high end of ranges if I was swing trading

Cathie Woods imho, unfortunately is trapped by her investors and the spotlight.

This is why fame and glory is useless when it comes to the markets, you need to be free to do what you need to do without having a second thought.

As individual traders and investors, we have way more freedom to get out of danger and buy during times of panic in a controlled manner. Cathie is stuck and eventually she will get caught and obliterated like the rest of the fund managers

The market will destroy anyone, doesn’t matter how small or big without mercy and take every penny

Bull markets are born on pessimism, grown on skepticism, mature on optimism and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.

This quote tells you everything you need to know. All of us can out perform these so called experts