People love to laugh at Cathie Woods, but if anyone is a genius here it's her. See the Fed causing the Everything Bubble, start a fund buying only the most ultra-speculative story stocks and charging high fees to investors, give a few media interviews and let the investor cash roll in. She's worth nine figures and took zero personal financial risk to get there. Best part is that if the boom ever re-ignites, people will stampede right back into her funds as if the ARKK crash never happened.
Her net worth is around 250MM, I am not sure how much exposure to the market. She is 66. So my problem with her is this: why are you still running this show instead of looking for golden earrings with a metal detector on Florida's beaches? OK, OK, that was ageist. But the point stands, at that money a few tens of millions more or less doesn't really count, so why not just enjoy it before getting Covid and die? (another joke) Ride young stallions or enjoy your grandkids. Instead of that she is going to be the next Abby Joseph Cohen who was right, ONCE.
Agree. I know some Investment Managers who can't seem to differentiate between being a Fund Marketing genius and a Stock Picking genius. Most of these guys are executing on an investment mandate. Some lucky ones ride a secular trend to stardom. She is considered a star/genius by some of her peers. They don't care how much you make or lose. They worry about underperforming the established benchmark for the fund. Also, Institutional clients have a just little bit more understanding that the overall performance is mostly attributed to the allocation decision. If they signed off on a strategy chasing much hyped stocks, they are the idiots. Most likely, they knew when to drop that allocation. She just gave them what they wanted.
In spite of what has happened, she is reported to be getting net inflows. I am astounded and would love to see that flow data.
Bill friggen Hwang seeded her fund. What risk? Ivan Boesky walked away with some money too? Never to be heard from again. When you got a big ego that is crushing, especially when you are on the downhill side of life no matter how much money you got stashed. + + + New multi-year low today. Of course. And as for inflows, May 4th volume was the biggest since January.
As we get deeper into a bear market... we'll get to the point that those who want to hold their positions on margin will have to sell "something else" to meet margin calls... it's a matter of "sell what you can". That's the primary reason that nearly every sector eventually gets sold off.