Cathie Wood’s ARKK: 2 of Beta, None of Alpha

Of course, Cathie Wood and ARK Invest have been the talk of the markets after her big bet of Tesla and huge returns last year. The problem? Cathie has 0 alpha. Her fund is just mimics a super levered NASDAQ position.

Here is a graph comparing the returns of ARKK ETF to the returns of the QQQ (NASDAQ 100) with 2x leverage.

As you can see there is nothing special about ARKK. It just has some super volatile stock positions that make it really risky. However, it has 0% alpha. It’s just another boat up a river without skill.