Robinhood Gets Cathie Wood’s Backing Despite Miserable First Day By Joanna Ossinger 30 July 2021 https://www.bloomberg.com/news/arti...ie-wood-s-backing-despite-miserable-first-day ARK Innovation ETF purchases stock worth more than $45 million Robinhood had worst-ever performance of a U.S. IPO of its size Robinhood Markets Inc. may have performed poorly after its initial public offering, but it got some high-profile support from Cathie Wood. Wood’s flagship ARK Innovation exchange-traded fund (ticker ARKK) purchased almost 1.3 million shares of the company on Thursday, according to Ark Investment Management’s daily trading report. At Robinhood’s closing price of $34.82, that gives the ETF a more than $45 million stake. Even after pricing the IPO at the low end of its range, Robinhood ended its first day down 8.4% from the offering price, the worst-ever performance for a U.S. debut of its size, according to data compiled by Bloomberg. Wood has become a superstar in the investing landscape after ARKK gained 149% in 2020. She has lured billions this year, riding the demand for thematic investing that retail trading apps like Robinhood have helped fuel. Her process is to sell winners and buy losers in small daily doses, Eric Balchunas, an ETF analyst for Bloomberg Intelligence, recently explained. She was touting Roku Inc. as one of her top picks just two weeks ago, but her firm has been trimming its holdings in the video-streaming company all month. The latest update showed they sold more of the company on Thursday. Ark’s daily trading statement reflects the management team’s active decisions, and does not include any create-redeem activity within its ETFs. For that reason, the firm’s overall purchases or sales on any day may vary from the statement. — With assistance by Drew Singer, and Sam Potter
Anti-Ark ETF Plan Caps a Bad Stretch for Cathie Wood’s Funds Sam Potter and Katie Greifeld, Bloomberg News Cathie Wood , Photographer: Alex Flynn/Bloomberg (Bloomberg) -- A new ETF designed to bet directly against Cathie Wood’s flagship fund comes not a moment too soon for her growing band of skeptics. All eight of the exchange-traded funds at Wood’s Ark Investment Management dropped in July and almost all have seen net outflows, with a day’s data still to be gathered. With a clutch of speculative tech stocks including Spotify Technology SA falling out of market favor, the $22.5 billion ARK Innovation ETF (ticker ARKK) is now trading in the red for the year. It’s a reversal from the standout performance in 2020 that earned Wood both fame and a mountain of assets. Now ARKK is the target of the Short ARKK ETF (SARK) that will deliver the daily inverse performance of the famous fund, according to a Friday filing to the U.S. Securities and Exchange Commission. Wood has made plenty of fans with her high-conviction bets on cutting-edge companies -- but plenty of detractors too. “Cathie Wood’s stellar performance over the past several years has not only been a magnet for bullish investors, but also for permabears,” said Nate Geraci, president of the ETF Store. “There’s always a cohort of investors wanting to bet against winners, with the simple assumption that the winning can’t last forever.” A spokesperson for Ark didn’t immediately respond to a request for comment. ARKK was among the best-performing ETFs in the U.S. last year, returning 149% to make a star out of Wood and lure billions of dollars. Both performance and flows have faltered in 2021. While inverse funds are common enough in the $6.6 trillion U.S. ETF industry, SARK stands out for its focus on a single manager. Most inverse funds bet against major stock indexes, and while those have gathered millions in assets, the Short ARKK ETF has serious blockbuster potential. About 8.7 million shares of ARKK are on loan to short sellers at present, worth more than $1 billion, according to data from IHS Markit Ltd. The ETF will make it easier for retail investors to bet against ARKK, but will also expose them to the usual risks of such products. Because they reset their leverage daily, the instruments can veer from their intended objectives if held for longer than a day. The filing is explicit on this point, saying the aim is to achieve an inverse return “for a single day, not for any other period.” Doubting Wood As Wood has become a famous fund manager -- in South Korea they have nicknamed her “Money Tree” -- she has attracted opprobrium as well as inflows. Critics say her thematic approach, which relies on trends like robotics or space travel, is merely surfing the whims of the retail investing crowd. The billions she has garnered are deployed into a relatively small batch of companies, some of which have yet to deliver any profits. Matt Tuttle, chief executive officer at Tuttle Capital Management LLC, will manage SARK. He said the creation of the fund is about providing a tool investors want, and that the firm is an admirer of Ark and of Wood. “The bigger risk in this fund isn’t the mechanics, it’s doubting Cathie Wood,” said Eric Balchunas, senior ETF analyst for Bloomberg Intelligence. “I called them Raiders of the Lost Ark and the metaphor is so apt -- just when they think they’ve got Indiana Jones in a cellar full of snakes, he gets out.” ©2021 Bloomberg L.P.
%% UPTRENDING bull market; HOOD also, even though 3 days means not so much/LOL. Cathie Wood /ARK has a n excellant 1 year, 3 year, 5 year track record, much better than SPY , which most[80%] cant beat.........................................................
I'm a big believer of that rising tide effect from the Fed My only investment in "stonks" is AMD calls which was profits of over $50K m2m earlier today. Of course the whole position can still go to $0 but cannot close it until January 2022 to not add to my 2021 Tax obligations [I could probably put a short position for my synthetic deltas to lock in profits and not close the short position nor the options until January 2022? maybe if profits m2m hits $100K ] Edit: If someone puts a bold trade and gets rekt = stoopid If someone has conviction to put a bold trade and makes $$$ = got lucky
Somehow though ARKK got stuck in the mud as the tide failed to lift it today. Maybe sprung a leak, Noah won't be happy.
Will Robinhood Be the Next Meme Stock After Its $32 Billion IPO? Some investors are convinced that the shares will “go to the moon.” Others are unsure about the company’s long-term prospects. https://www.bloomberg.com/news/arti...-next-meme-stock-on-its-own?srnd=premium-asia