Who did provide the seed money for Ark's first 4 ETFs???What is the difference between average investors and professional investors?
There are many, but the most important ones are:
1- Data analysis
2-Systematic approach
3-Strategy
4- ...etc.
This list could be very long, but what made living legends like Warren Buffet, Jim Simons, and Micheal J Burry ...etc. is data analysis and their different approach to the data market provided to these legends.
There is one factor above all of this and that is Consistency in profit-making..!
Warren Buffet believes he is successful in the market because he moved 2 steps forward and part of one back. in the past 60years. Jim Simons, on the other hand, beats Warren buffet exceptional performance in the past 20 years..! Micheal J Burry the true master in detecting bubbles has never had more than -18% performance in a year and it happened just once!
Why Cathie Wood does not belong to the above league?
Now I would like to look at the performance of Cathie Wood in 2021, 2014-2020, and then, her performance before she founded Ark invest.
Digging her past performance provides valuable data..!
The Bright side: Ark invest outperformed all major indexes by far..!
The Golden ages of Ark invest: 2014-2020 Beating all major indexes by far.
The Dark side:
The coin flipped in 2021: Ark invest underperformed all major indexes by far..!
The most important questions here are :
A: What has happened to Ark?
B: Why they have negative performance while all major indexes are positive???
To answer this question we should go back in the past a little more:
Cathie Woods financial life before Ark invest and at the early stages of Ark invest provides important clues:
Two Red Flags:
In 2001, she joined AllianceBernstein as chief investment officer of global thematic strategies, where she worked for 12 years, managing $5 billion. She was criticized for performing worse than the overall market during the financial crisis of 2007-2008.
In 2014, after her idea for actively managed exchange-traded funds based on disruptive innovation was deemed too risky by AllianceBernstein, Wood left the company and founded Ark Invest.
Why did she name the investment management Ark?
A devout Christian, Wood found inspiration for her company while reading The One-Year Bible. She often came across passages describing the Ark of the Covenant – the chest said to have held the Ten Commandments – being taken by the Israelites into battle. On the daily devotional podcast Jesus Calling, Wood said her company was founded on faith and added: “As I began to get this idea of a firm going and realized that I was fighting this war, I knew I had to name my company ‘Ark’ for Ark of the Covenant.”
ARK's first four ETF funds were seeded with capital from Bill Hwang of Archegos Capital.
Who is Bill Hwang???
The Tiger of Wall Street is a Korean-American investor. Bill Hwang was once known as ‘the greatest trader you had never heard of’ – then he lost it all. Bill Hwang, the Wall Street investor who ‘lost’ US$20 billion in days.
Other than the catastrophe he created in 2021, he had other Red Flags in his past.
In 2013, Bill Hwang was determined to pick up the pieces of a once-promising hedge fund career that had collapsed. Trading losses during the financial crisis had humbled him and the U.S. criminal conviction of his firm for insider trading had knocked Hwang out of the hedge fund game completely. He closed his Tiger Asia hedge fund, which specialized in Asian internet and media stocks, and lost all his clients.
He would soon be banned from trading in his favorite market, Hong Kong, and the other Asian markets in which he specialized, Japan and Korea, did not hold the same opportunity.
So Hwang turned his attention to the U.S. stock market.
Washington, D.C., Dec. 12, 2012 —
The Securities and Exchange Commission today charged the manager of two New York-based hedge funds with conducting a pair of trading schemes involving Chinese bank stocks and making $16.7 million in illicit profits. He and his firms have agreed to pay $44 million to settle the SEC’s charges.
The SEC alleges that Sung Kook “Bill” Hwang, the founder and portfolio manager of Tiger Asia Management and Tiger Asia Partners, committed insider trading by short-selling three Chinese bank stocks based on confidential information they received in private placement offerings.
March 2021:
Bill Hwang stocks Crash: NASDAQ:VIAC NASDAQ:DISCA NASDAQ:BIDU NYSE:VIPS NYSE:TME
Interestingly, 4 days before it happened, I predicted it on March 16, 2021 :
VIAC:
TME:
The Grace & Mercy Foundation helps Hwang not paying Capital income tax:
The Grace & Mercy Foundation is almost entirely funded by Hwang, who serves as a director with his wife Becky and has given $591 million to the grant-making organization since its founding in 2006, according to IRS Form 990s filed through the end of 2018. More than $500 million of that amount came during the four most recent years of filings, from 2015 through 2018. The foundation’s net assets are listed in its latest filing at $470 million, after paying for operating expenses and gifts to nonprofit groups over the years.
Market Manipulators Work together:
While many people think I have a personal problem with Ark invest, I'm trying to shine the light on the missing part of this puzzle!
So far I found 4 out of many,
Cathie Wood
Elon Musk
Chamath Palihapitiya
Bill Hwang
...
Reference:
en.wikipedia.org
en.wikipedia.org
www.forbes.com
www.scmp.com
www.sec.gov
