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What does the good book say--pride cometh before...The $17.8 billion ARK Innovation ETF has tumbled more than 20% this year, with several of its top holdings like electric-vehicle giant Tesla Inc. and video-streaming platform Roku Inc. down from their peaks. During the same period, the S&P 500 Index climbed about 24%.
“I’ve never been in a market that is up -- has appreciated -- and our strategies are down,” Wood said in a Thursday interview with Bloomberg Television. “That has never happened before.”
Wood says her funds are sticking to their plans even after the rough stretch, and that their models forecast big returns in the next half decade.
“Our strategy is our strategy,” she said. “The opportunity in our strategy is huge right now. We expect a compound annual rate of return of roughly over 40% over the next five years.”
“When we go through a period like this, of course we are going through soul-searching, saying ‘are we missing something?’” she said, adding that in response, Ark has doubled down on its research and modeling.
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Done learnt an expensive financial investing lesson as my hard lesson was monitized. Alledged fraud by the fund mgr who was "adjusting" the NAVs as he felt was appropriate. Alledgedly.
I still think at the end of two years our, I will have taken less of a hair cut that this dumpster fire of a fund, ARKK etc. Someone commented several months ago, ya, at least Wood isn't a crook and if you lose money with her you lose it legit. True that but net, net, fraud, inexperience, marketing charlatan...your checking acccount and spending power doesn't know.
If rates do go up, and personally I think Powell might try and then all kinds of volatility will happen, her funds will really get smacked...who sung the song..."you, ain't seen nothing yet"....BTO? Bachman Turner Overdrive...baby. baby....ya ain't seen nothin'yet....
Best,
Baseball Fan
Investing should not be dogma; informed adaptability and agility are often good qualities to have.
Perhaps her current picks will appreciate by that amount. But - will she have any investors left in her fund by than? Having played around with one of these hot potatos this year (DKNG) all I can say is “Ouch”.
I used to think gold mining funds were volatile!
"Despite a multitude of warnings, here at MFO, at Morningstar, and elsewhere, investors absolutely poured money into the ARKK Innovation ETF in December 2020 and January 2021. The warnings were pretty straightforward: (1) you can’t buy last year’s returns, so don’t let those sway your decisions, (2) ARK was wildly understaffed and inundated (net $20 billion in 2020) with dumb money, and (3) manager Cathy Woods has a consistent long-term boom-and-crash track record, with the boom having just occurred."
"Good news for investors committing their money on December 1st: you’re only down 13% since then. Less good news for folks who made ARKK one of their New Years 2020 resolutions: you’re down 24%. Folks who gave shares as a Valentine’s Day present? They’re underwater by 39%."
+1
“ Investing should not be dogma; informed adaptability and agility are often good qualities to have.”
As in all things, my friend!
“Worse still, despite (ARKK’s) fantastic gains since it was launched in 2014—it has returned more than 340%—its investors have been terrible market timers. They poured billions into the fund during 2020 and the beginning of 2021, driving its flow-weighted price to about $109, according to StoneX strategist Vincent Deluard, or nearly 13% above Thursday's close of $96.70.”
“Up & Down Wall Street” / Barron’s - January 3, 2022
Part of that cargo, DKNG, is currently flirting with $25, having been around $75 earlier in the year. Suspect it will close below $25. If I were Wood I’d consider tossing that one overboard.
At what point does this quack cross over into the "unethical behavior" realm causing finanical losses for so many?
Will she bring the Nasdaq down with her? Do remember that for many of her holdings she holds a double digit % of the float...when it goes down...it really gonna go woosh, no?
Next stop for ARKK, low-$50's??
Please note I do not know anything about anything, just posting for entertainment purposes.
Good Luck to All,
Baseball Fan
I've also often found that many people who profess or claim to be religious only play that card when it's opportunistic (e.g. see 45).
Largely I attempt to let neither politics or religious beliefs interfere with investment decisions although sometimes they are extremely difficult to avoid.
I can’t see much difference between stopping at a convenience store in Michigan on the way home from work and picking up a 6-pack of beer along with a half-dozen state lottery tickets and than watching the state sponsored “live drawing” on TV that evening, and wagering $5 or $10 online on a sports event you’re viewing at home.
There are a lot of vices in this world. Gambling is one. And more so when it involves amateur athletes. I agree. But, as think @Mark suggested, you can visit any live casino and bet on a college game just as you would at home. I don’t think @LewisBraham has been in many casinos. I haven’t either. But the few I have been in are highly addictive in atmosphere. The sounds, the flashing lights, the skimpily clad waitresses. All of this is compelling to the addictive personality who tends to stay too long at the bar and run up an excessive betting tab. I avoid live casinos like the plague.
The online casinos are taxed heavily. I don’t think 100% of it goes to education; but a lot of it does. In fact, it’s the heavy state taxes on profits (50% in NY) that is making it difficult for the online casinos to stay viable. Be careful what you wish for, because that revenue is critical to the government and would need to be made up from other sources.
Come to think of it … Any one of us can log-in to Fido or Schwab or VG any time, day or night, and place a “bet” on any number of highly speculative stocks, currencies or ARKK-like funds. But, we don’t call it “gambling”. It’s “investing.”
Here's one: God, Money
I’m sympathetic to Lewis’ point of view too. I’m sure many will succumb to temptation and squander precious money needed for food and shelter on these online apps. Probably some I know and care about. Wonder what other “unsavory” businesses Wood’s invested in? To be honest, I’m a bit worried about her. Must be a tough row to hoe about now.
The Morgan Stanley site shows the divs, but doesn't yet report the true gain for December.
https://www.morganstanley.com/im/en-us/registered-investment-advisor/product-and-performance/mutual-funds/us-equity/growth-portfolio.shareClass.A.html
The $18.005 div bought 0.2588 shares at the ex-dive price of $69.57. Perhaps Stockchart took those shares and valued them at the old price of $89.20, coming up with a "new distribution" of $23.085.
Now the same calculation as before, using this new distribution amount, comes to:
($69.57 + 23.09)/$89.20 = 1.038%, or a 3.8% increase. Not all the way up to 4.4%, but that's all I can coax out of bad arithmetic.
I did buy a little bit of ARKK yesterday. I am not putting any money into ARKK that I can not afford to lose. This is not Cathy's first rodeo but I do not see any trophies from past rodeos.
Not sure why a public message feature is in MFO and how it is meant to be used - what is easy for me to understand is, if one likes to send a private message, send a private message; otherwise, post it in a thread you would like to comment.
"davidrmoran → BaluBalu
about big drops, you do know about distributions, right? (honest question)"
I have no clue what the above public message is about but since this thread has my recent activity, I am posting here.
I did not expect both M* and Stock Charts to screw up accounting of YE distribution in their total return charts. I have seen before M* screw up YE distribution accounting and so cross checked with Stock Charts and assumed the difference probably relates to a distribution. Is Davidrmoran suggesting that the 25% drop in total return by Stock Charts measure is also largely explained by year end distribution and thus Stock Charts is also wrong by a big magnitude?
P.S.: Some of the mistakes in M* charts do not ever get corrected - not sure why. I expected with the passage of time, machine mistakes get fixed but looks like evidence does not bear my expectation. I use M* for charts (usually cross check with Stock Charts) and for my personal portfolio tracking. I found a lot of mistakes in the portfolio tracking tool and accepted to live with it.
apologies