It was my understanding (although bear in mind I have the IQ of a small mollusc) that ARK has rules that if one stock is more than 10% of the value of one of the funds then it needs to be rebalanced, no? So sure, you can argue that selling TSLA is a dumb move, but that's the nature of the beast...
Anyone buying into the fund knows, or should know, the basket of stocks and the maintenance mechanisms, of you think COIN, Unity and Roblox are crappy stocks then you wouldn't have bought into ARKK in the first place, right?
Not trying to defend Cathy here, but I think the constant barrage of critical posts is getting a bit old
Previously the ETFs could invest only up to 30% of their assets in a single company amounting to no more than 20% of its outstanding shares
www.ft.com
Disclosures show Ark has removed limits on company ownership
Previously the ETFs could invest only up to 30% of their assets in a single company amounting to no more than 20% of its outstanding shares
APRIL 6 2021
There is no longer a limit. She is selling into the dip (rather than buying) of a stock she thinks could hit $4,600 in ~4 years.
She basically got lucky on one stock - TSLA - and is still loading up on a bunch of (so far) losers.
From its ATH in February 2021, ARKK is down over 75%. In that time, SPY is up ~6% and QQQ is down ~3.8%. To underperform that badly in under 15 months, in what is essentially a flat market from that time...it takes some real trying.
She thought we had "bottomed out" in early May of 2021 and she "liked the setup." Just a month ago she was touting her confidence that her ARK funds would return 50% annually over the next five years (an ROI unheard of in active management).
I don't think the negative posts/sentiment have to do with which stocks she's buying or when. To me, it's...
a) selling Tesla into the dip, when she doesn't have to, while promoting price targets of $4,500+ in just 4-5 years time
b) not admitting she was wrong or they missed something, but doubling down
c) probably much smaller, but their "open source" price targets routinely get picked apart for very poor logic
But you're right - people who invest with them have to decide if their active management is worth the fees they charge. Since inception, ARKK has underperformed QQQ and has, at last check, basically returned the same as SPY. In the last five years, both of those funds have outperformed ARKK and Cathie loves to talk about their five-year time horizon.
noahpinion.substack.com
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's on Shanghai, but the Ducks are paddling hard in Austin and Berlin 
