Key insights
- The author criticizes Cathie Wood's ARKK Innovation ETF for significant underperformance compared to the S&P 500 over the past 5 years. They argue that ARKK's holdings are highly speculative and vulnerable to a market correction, potentially leading to bankruptcies within the portfolio. This negative sentiment towards a prominent growth-focused fund manager could reflect broader concerns about risk appetite and valuation within the US equity market, particularly for high-growth stocks.
First of all her fund has severely underperformed the market. Her “innovation fund” has returned -23% over the last 5 years, during arguably the largest innovation cycles in a lifetime.
SP500 has returned 75% during the same time.
Even with that, most of trades are so basic, like someone who reads wall street bets and jumps On the most ridiculous trades possible.
People say “well if AI bubble pops, she will come out ahead”. Actually her portfolio is filled with such hyper shitcos that a market correction would mean a ton of her holdings probably will go bankrupt.
A monkey flinging shit at a dart board with stock tickers would have outperformed her “innovation fund” in the last 5 years. What a joke. How does this woman have a job.