Thanks for the opportunity to discuss Ark, it's an interesting exercise for the weekend. Need to emphasis that I'm not a fan of Ark, nor do I follow them closely, so much of this is new to me as well.
(12-11-2021, 06:58 PM)Corgitator Wrote: [ -> ]I can't find the model from my computer, but this link touches on the matter: https://themarketplunger.com/2019/05/26/...dels-fail/
Thanks for the link to the blog. I don't have time to go through point by point, so I checked the first point on Ark's Tesla model based on this link:
https://github.com/ARKInvest/ARK-Invest-...18.21.xlsx
And the specific allegation that Ark have hard-coded 19 billion PPE as 19,000 is simply not true, they did coded it correctly (screenshot below):
Just FYI, @keubiko that raised that point, is a perma Tesla bear (TSLAQ), that used a blocklist to block me on Twitter as well. I have never interacted with his account before, very weird.
2. On Ark not doing what they say they are going to do (Long-Term compounding):
This is a link to the Prospectus of their flagship fund:
https://etfs.ark-funds.com/hubfs/1_Downl...pectus.pdf
They did not mention anything about Long-Term (LT) compounding actually:
Quote:Principal Investment Strategies
The Fund is an actively-managed exchange-traded fund (“ETF”) that will invest under normal circumstances primarily (at least 65% of its assets) in domestic and foreign equity securities of companies that are relevant to the Fund’s investment theme of disruptive innovation. The Adviser defines “disruptive innovation” as the introduction of a technologically enabled new product or service that potentially changes the way the world works. The Adviser believes that companies relevant to this theme are those that rely on or benefit from the development of new products or services, technological improvements and advancements in scientific research relating to the areas of genomics* (“Genomic Revolution Companies”); innovation in automation and manufacturing (“Automation Transformation Companies”), transportation, energy (“Energy Transformation Companies”), artificial intelligence (“Artificial Intelligence Companies”) and materials; the increased use of shared technology, infrastructure and services (“Next Generation Internet Companies”); and technologies that make financial services more efficient (“FinTech Innovation Companies”).
In selecting companies that the Adviser believes are relevant to a particular investment theme, the Adviser seeks to identify, using its own internal research and analysis, companies capitalizing on disruptive innovation or that are enabling the further development of a theme in the markets in which they operate. The Adviser’s internal research and analysis leverages insights from diverse sources, including external research, to develop and refine its investment themes and identify and take advantage of trends that have ramifications for individual companies or entire industries. The types of companies that the Adviser believes are Genomic Revolution Companies, Automation Transformation Companies, Energy Transformation Companies, Artificial Intelligence Companies,
Next Generation Internet Companies or FinTech Innovation Companies are described below:
(skip)
The Adviser will select investments for the Fund that represent its highest-conviction investment ideas within the theme of disruptive innovation, as described above, in constructing the Fund’s portfolio. The Adviser’s process for identifying Genomic Revolution Companies, Automation Transformation Companies, Energy Transformation Companies, Artificial Intelligence Companies, Next Generation Internet Companies and FinTech Innovation Companies uses both “top down” (thematic research sizing the potential total available market, and surfacing the prime beneficiaries) and “bottom up” (valuation, fundamental and quantitative measures) approaches. In both the Adviser’s “top down” and “bottom up” approaches, the Adviser evaluates environmental, social, and governance (“ESG”) considerations. In its “top down” approach, the Adviser uses the framework of the United Nations Sustainable Development Goals to integrate ESG considerations into its research and investment process. The Adviser, however, does not use ESG considerations to limit, restrict or otherwise exclude companies or sectors from the Fund’s investment universe. In its “bottom up” approach, the Adviser makes its investment decisions primarily based on its analysis of the potential of individual companies, while integrating ESG considerations into that process. The Adviser’s highest-conviction investment ideas are those that it believes present the best risk-reward opportunities.
Under normal circumstances, substantially all of the Fund’s assets will be invested in equity securities, including common stocks, partnership interests, business trust shares and other equity investments or ownership interests in business enterprises. The Fund’s investments will include micro-, small-, medium- and large-capitalization companies. The Fund’s investments in foreign equity securities will be in both developed and emerging markets. The Fund may invest in foreign securities (including investments in American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”)) and securities listed on local foreign exchanges.
The Fund is classified as a “non-diversified” investment company under the Investment Company Act of 1940, as amended (the “1940 Act”), which means that it may invest a high percentage of its assets in a limited number of issuers.
..
Take it as you will. I think the bolded sentence summarizes their strategy well. I take it as they would trade in and out of their position every time a "higher conviction" opportunity arises (which happens often in the fast changing landscape of innovation and technology).
I think that's also similar to my personal philosophy as well (only sell when you can replace the position you are selling with a better one).
Personally, I think you might be a bit hard on her.
3. Also, no good promoter will admit they are just a promoter right? So that point is also kind of unfair.
4. Let agree to use the next 5 years to decide if she is skillful or lucky. Have a great weekend.
Peace!