QQQ is not a levered index, it's just a plain Nasdaq 100 index.If you look at her actual returns she beat QQQ ( her fund is an active fund so comparing it to a levered index is a bs comparison to begin w) for 7 yrs except the recent cherry picked 4 months.
Elon Musk and Jack Dorsey are 2 of the most successful 'tech billionaires' and they agree w her on many areas: EV, Bitcoin etc. She has a team of analysts who do white papers on areas they invest in. She and her team are probably the leading authority on some areas. I can't find any other analysts that have done as much research in these areas if any at all. In fact her funds are the only I can find in tech that are truly actively managed and not based on shitty index screening. There are many other tech experts like Beth Kindig but they don't manage funds.
ok Someone bandied about the term 'leveraged qqq' and in the past they compared this active fund to a 3x levered QQQ etf.QQQ is not a levered index, it's just a plain Nasdaq 100 index.
If you look at James's graph, she started her fund in Oct 2014 but she didn't start beating the QQQ until mid-2017. Then she did beat it from mid-2017 until early 2022, and now she is again not beating it. But his point was that since inception, she has not beaten it. That means if in Oct 2014 you put equal amounts into QQQ and ARKK, your QQQ would be worth more today than your ARKK.
I agree with you that saying she "sucks at her job" is a bit strong. But this shows the fallacy of active management. Active management can either outperform the index or underperform it. Often, it will outperform for a while and then underperform for a while. Investing in an active managed fund is no guarantee of outperforming the index.
We've known she's a bad stock picker for a very long time. Cathie used to manage a hedge fund during the dot com bubble, something she founded in 1998 or 1999 as far as I know.Cathie Wood sold Tesla shares and bought GM shares. GM shares went down. Go away Cathie........you are bad luck.
... the rinse, scam, and repeat technique? That's a new one.We've known she's a bad stock picker for a very long time. Cathie used to manage a hedge fund during the dot com bubble, something she founded in 1998 or 1999 as far as I know.
Her hedge fund failed and everyone pulled out their money. The ARK thing is her second attempt at it but it appears to be playing out like her first try.
If most people buy the hype it pushes prices to higher high and then the same people sell the low and push it lowerARKK fund price has retraced back to March 2018. Most investors have lost money in the ARKK fund.
I am surprised they haven't bailed yet. Who invests in losing stocks like this ?