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3,496 Views | 21 Replies | Last: 3 yr ago by deadbq03
RogueAg
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AG
Given rising interest rates and its rather negative effect on tech stock in particular... what are your thoughts on Woods' ARK funds going forward this year?

Not sure where interest rates will top out, but as long as they go up, equities in general look like they'll pay the price with tech equities getting hammered the most. Thoughts?
Pepper Brooks
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AG
I gave ARK a relatively modest percentage of my retirement account balance at the beginning of feb as a 3 year experiment. I'm betting that Cathy Wood knows more than I do, has superior insight/analysis than I do, and will pivot accordingly.

There is a reason I allocated retirement holdings and not after tax funds I'm going to need in the near future.
“There is no red.
There is no blue.
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And there is you.”

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Petrino1
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I like ARKK as well. Invested in them last month, hope Im not too late to make money off them. I wanted more exposure to Tesla without having to pay their high share price.
RogueAg
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AG
I invested back in the December timeframe.

I agree... Wood certainly knows more than I do. However these funds have been hemorrhaging money over the past week+ at twice the rate of even IXIC. Difficult to swallow.
Topher17
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AG
ea1060 said:

I like ARKK as well. Invested in them last month, hope Im not too late to make money off them. I wanted more exposure to Tesla without having to pay their high share price.
I was starting to dig into the funds and was super intrigued, but the over-exposure to TSLA is the reason why I decided against it, especially with TSLA now included in the S&P500 index funds I already have. It sure seems like how TSLA goes is how the fund as a whole goes.
kyledr04
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I have some ARKG. Of course it dropped after I bought it but would expect a comeback after the dip.

Planning on buying ARKX as soon as it comes out
Petrino1
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Anyone know when ARKX is coming? I read March but haven't seen seen any specific dates.
kyledr04
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AG
That's what I saw too but nothing specific
AggiEE
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Cathie Wood is a charlatan and she will be forgotten about just like all of the other hot fund managers of their day. She is overpaying for growth, will have no ability to properly allocate huge inflows into the fund, and could run into serious liquidity issues. Her analysts are all 20-somethings straight out of college with a BS in Political Science.

Avoid.

For a history lesson:



Reminders of:
Gerald Tsai Jr's Manhattan Fund
Fred Carr's Enterprise Fund
Garett Van Wagoner
Ryan Jacob's Jacob Internet Fund

More reading:

https://www.morningstar.com/articles/1026630/ark-funds-the-tail-that-wags-the-dog


bmks270
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AG
Excellent video.

I'm very much a Peter Lynch and Warren Buffet style investor. The research data indicates that the chickens nearly always come home to roost. Share prices will eventually catch up with revenues and profits, it keeps going until no new fools remain. I look for a track record of revenue and profits combined with a competitive product or service offering.
RockOn
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SMM48
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She's been managing money for quite some time. Ignoring what she did at AB isn't telling the whole story.

Doubt the Morningstar article even accounts for her performance at AB Research.

Been with Ark since 2016, both in etf and single managed account.

Arkk currently holds 55 names. Single managed account holds 33.

In a time of prosperity, the etf sell take profits and will expand the roster of names.....considering those names as "cash". In a time of correction/turmoil/pandemic they will reduce the holdings back to their base highest conviction names.

More to it than Morningstar and naysayers realize.
SMM48
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AG
You mean guys who made their money before information flowed freely and real-time?

Although they both are legends, Buffett hasn't beaten the s&p index.....which caused them to take a huge position in aapl.

I do love me some Dairy Queen though.
bmks270
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AG
FunkyKO said:

You mean guys who made their money before information flowed freely and real-time?

Although they both are legends, Buffett hasn't beaten the s&p index.....which caused them to take a huge position in aapl.

I do love me some Dairy Queen though.


Well, I am not as value focused as buffet was, but in other ways like the business architecture, fundamentals, product, execution, and some consideration for valuation. Just because the internet exists doesn't mean you should overpay for profits. Ultimately shares are commodities whose price are determined by investor demand. Profits drive investor demand, so does hype, but hype is much harder to predict and much less reliable.

I also try and incorporate the 80/20 principle, find the 20% likely to win, and cut out those likely to be in the lagging 80%. That is actually similar to the ARK approach. And for that reason I'm not a fan of index funds that just own the whole broad market.

And finally, I think it's important to have enough diversification where one position crashing can't wipe you out.

There is less reason to over pay for profits in the modern Information age than there was decades ago. The game is a little bit different because growth companies are likely to be more debt fueled than in the past as money can be burned faster and businesses scaled more rapidly than ever.

At the end of the day the share price moves on supply and demand just like everything else. The best predictor of a stable demand for a company's shares is the level of investor confidence that the company will be profitable.
SMM48
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AG
10 great ideas. That's all the diversification. One needs .

Qqq fits your 80/20 thesis. So does IVV.
bmks270
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FunkyKO said:

10 great ideas. That's all the diversification. One needs .

Qqq fits your 80/20 thesis. So does IVV.

MrJonMan
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So what's everyone's favorite ETF. I have a small position in both ARKK and ARKG. Considering leaving ARKG

Also have some in VTI for my Roth but that's all my ETF holdings
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Bird Poo
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I'm in ARKF due to some of the blockchain stuff they're buying.
RogueAg
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Ask me in a few days and I'll have a better answer.... Looking to transition from MF's in some areas over to ETFs. Currently in ARKK and ARKW (been a brutal last two weeks). Also looking at options like SCHD as well..
2wealfth Man
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I am in Ark Genomics. This one area where I am willing to pay for expertise in picking winners and losers. This is way out of my wheel house.
MECH Abe
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AG
Any thoughts on KOMP as a passive alternative to ARK ETFs?
Frisco86
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RogueAg said:

Given rising interest rates and its rather negative effect on tech stock in particular... what are your thoughts on Woods' ARK funds going forward this year?

Not sure where interest rates will top out, but as long as they go up, equities in general look like they'll pay the price with tech equities getting hammered the most. Thoughts?


Cathie Woods time horizon is 5+ years. She is fine if many of the companies don't make a profit now and focus on growth So if you are looking at just this year, then your investment vision (horizon) is not close enough imo.
deadbq03
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The past year has seen lots of new Actively Managed ETFs pop up.

It's early days for them, but I really like some of the small-to-mid cap ones that aren't so heavily dependent on the Tech sector: CBSE, CBTG, MGMT, SIXS, for example.
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