The ARKK Needs Some New Animals

Published by Christopher Schwarz on

News today that ARK investing has altered it’s investment policy. This policy is the sign that a. Cathie is out of ideas, b. the ETF got too much money, and c. She wants to add even more risk, which I already documented is quite high.

The fund can now one even higher ownerships in companies than it already owns. And it already owns a LOT of companies:

As noted in the article, the combination of concentrated positions plus leverage plus a huge mismatch in ETF and position liquidity screams danger.