Sounds like another ponzi scheme play to me........
We've been documenting Cathie Wood's adventures in active management over at ARK Invest for the better part of the last year and a half now.
What started as a look into how the law of large numbers and Wood's popularity presented numerous pitfalls back in December 2020 has now become something of a financial world soap opera, with many observers watching ARK funds extremely closely as the NASDAQ teeters on the brink of a fever pitch and Tesla hits a patch of rocky road in China.
Most recently, we've written about Wood for several reasons: the first is that she was backed by Bill Hwang, who was at the helm of the massive Archegos Capital blowup that singlehandedly pasted numerous equities to the tune of more than 50% each, while also doling out a multi-billion dollar loss to Credit Suisse and other counterparties caught "holding the hot potato". The link drew obvious comparisons, although we're certain Wood isn't employing the insane leverage that catalyzed Hwang's blowup.
The second is because the launch of her newest actively managed "Space Exploration ETF" has included some curious names. For example, it owns names like John Deere, which many find curious, while excluding space exploration pure plays like Maxar.
But something else is going on that has piqued our curiosity as of late. Wood's actively managed style seems to be drifting further away from risk-adverse and closer to just "risk". Sure, we have pointed out in the past Wood's propensity to sell large, liquid tech names like Microsoft in favor of buying speculative early stage names like Workhorse and Vuzix.
And now people are also pointing out that ARK's funds have been taking sizeable stakes in other ARK funds. ARK's Space Exploration ETF now owns 7.2% of ARK's 3D printing ETF, for example.
lot more,,,,,,,,,,,,,,,,,
http://www.zerohedge.com/markets/cathie-woods-bloated-ark-forges-forward?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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