00:00 Speaker A
Cathie Wood.
00:00 Speaker B
Yeah.
00:01 Speaker A
It the knives were out today.
00:03 Speaker A
All right, on X.
00:04 Speaker B
Why?
00:04 Speaker A
Well, it was rough.
00:05 Speaker A
Here’s Doug Cass,
00:07 Speaker B
Right.
00:07 Speaker A
well-known investor, long time market watcher Mr. Cass. He says, in aggregate, the Ark ETF
00:14 Speaker B
Yeah.
00:14 Speaker A
has lost about 13 billion of investors’ capital. That is, Doug says, the single largest loss of an actively traded ETF in history. Now, now, here comes Eric Balchunas, Bloomberg ETF analyst, Eric’s a well-known guy. He says, hold on.
00:30 Speaker B
Yeah.
00:31 Speaker A
Yeah,
00:31 Speaker A
He says, hold on. Eric says, wait a second. There’s been a strong performance since the launch. She was smart enough to buy Nvidia, Bitcoin, Tesla, and a few other big names 10 years ago.
00:41 Speaker A
He did have what he called a critique of her rebalancing. Had the right picks but didn’t let winners run, is always trimming studs and adding to duds to keep waitings. A lot of different opinions here. What do you make of it?
00:53 Speaker B
Well, Mr. Cass does raise an interesting point that yes, that fund is down significantly from the all-time high. But marking a fund to the all-time high and then penalizing it indefinitely. Um yes, okay, that’s one way to approach it. I’m not sure that’s entirely fair. She did buy a lot of companies that quite frankly, um went if not to zero, certainly close to zero. As one of my original trading mentors and bosses used to say,
1:22 Speaker B
uh, the money went to money heaven. It’s never coming back. I mean, and by the way, look, I’ve had some of those myself. Uh, you know, Silicon Valley Bank, I owned it. and that thing went basically to zero. I mean, it does happen. But that is also why you have to wait companies very um carefully. So in my portfolio, I have uh 40 names approximately and they are weighted at anywhere from two to 4% of capital at cost. The big guys like Google, Amazon, they’re at 4% of capital at cost. Uh whereas the little guys, the the more volatile, Sofi, uh Jobo uh Joby, uh Aurora, etc. They’re 2%.
2:01 Speaker B
So if I do have a blow-up, and look, everyone has a blow-up every now and then. Um, if if if a stock goes to zero, I can live to fight another day. And, um, she is known for um weighting her favorites heavily. I mean, she’s got some positions that are um, you know, 8, 9, 10, 11 position or percent of of of capital. And I know that a lot of um, hedge fund managers over the years have said, well, the way you build wealth is to make concentrated bets. Fine, I get it. and they’re they’re right. You’ll you’ll if you pick your stocks correctly, you’ll make more uh by owning five or 10 names, um, in outsize positions than you will owning 40 weighted two to two to four. But as someone who manages other people’s money, I want to be responsible in the way I do that. And for me, that means diversification. And so I think he’s being a little bit harsh on Cathie Wood. She’s been a wonderful investor, but um, she’s lost some people’s some money too.
3:05 Speaker A
you know, when I when I have some more money to put to work, all due respect, it’s not going to Cathie Wood, it’s going to Adam.
3:07 Speaker B
Yeah.
3:10 Speaker B
Oh, thank you, sir. Love it. Love it.
3:10 Speaker A
Thank you for taking the time today. Glad to have you here. Thank you.
