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To: sixty2nds who wrote (6957)4/10/2023 10:43:31 AM
From: Sun Tzu1 Recommendation

Recommended By
sixty2nds

  Read Replies (1) | Respond to of 10711
 
What I liked about ARKK was that it showed good alpha. When it was up, it was like a 2.5x leveraged QQQ, but when it went down, it was like 1.5x.

What I failed to appreciate, and I think that most people missed it too, is that despite being actively managed, Ark has zero risk management. Cathie Wood operates it like a passive / index fund. BUT, unlike normal passive funds, it is not rules based. Wood just buys and sells whatever she likes.

This is a bad combination.