Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

How a Flood of Money Swamped Cathie Wood’s Ark

* May be pay-walled.

By Jason Zweig, The Intelligent Investor at the WSJ.

"The ARK Innovation ETF posted big returns, and big money followed. Now it’s the latest example of what happens when a fund becomes too large for its own good."

Read Article

Comments

  • This is a prime example of why I don’t invest in hot funds.
  • edited January 14
    If you're not a WSJ subscriber Mark's link may not work. If not, try this one:

    Link to Article
  • @OJ - do you accomplish that by using the sometimes available "share" feature?
  • Hi there @mark- yes sir- the "Copy Free Link" of that "share" feature.

    Take care- OJ
  • Without analyzing the market cap and liquidity of the stocks Wood was invested in, this asset-size analysis seems incomplete to me. It think the speculative nature of the companies the ETF invests in and their extraordinarily high valuations may have been more to blame. This from a different Zweig article is significant however from a liquidity perspective though:
    ARK is already a big owner of some small stocks. At Israeli biotech company Pluristem Therapeutics Inc., with a total stock-market value of $219 million, ARK holds 15.5% of the shares outstanding. That’s three times as much as all other institutional owners combined. At a French biotech, Cellectis S.A. , with a $900 million market value, ARK owns 11.5%—more than the next 11 largest holders combined.

    Although those two positions make up barely 0.5% of ARK’s total assets, they reflect the firm’s style.
    But I wonder if investors still could've gotten burned pretty badly buying the same stocks in a smaller fund at 2021's speculative peak.
Sign In or Register to comment.