ARK, home of the flagship ARK Innovation ETF ARKK, tops the list for value destruction. After garnering huge asset flows in 2020 and 2021 (totaling an estimated $29.2 billion), its funds were decimated in the 2022 bear market, with losses ranging from 34.1% to 67.5% for the year. Many of its funds enjoyed a strong rebound in 2023, but that wasn’t enough to offset their previous losses. As a result, the ARK family wiped out an estimated $14.3 billion in shareholder value over the 10-year period—more than twice as much as the second-worst fund family on the list. ARK Innovation alone accounts for about $7.1 billion of value destruction over the trailing 10-year period.
The $16B is probably what is left after her “management”. There are other funds where the amount lost exceeds the listed size of the fund, like the Barclays fund $1.3B value, $3.0B lost. Wood’s “management” has lost the most of her shareholder’s money, because the fund. probably thanks to the endless hype I have posted about before, is larger than the funds that have lost more on a percentage basis.
That appears to be the current fund size, not the total invested. I imagine quite a few of the degenerate gamblers who bought her fund engaged in some panic selling when the music stopped.
Remember 3dfx? Super video board, horrible management. Some upstart company no one’s ever heard of came out of nowhere and destroyed 3dfx. I think the companies name was Nvidia or something strange like that.
On the 3dfx MF Board we used to award people the 3dfx Cup.
No, not the trophy cup, a jockstrap cup. Which you needed if you invested in 3dfx.
Oh, but the hype. A year ago, my feed would have half a dozen stories every day “Cathie Wood did this”, “Cathie Wood did that”, “look at these Cathie Wood stocks” “Cathie Wood said…” “more Cathie Wood stocks”, every stinking day.
If your explanation of the numbers is correct, then this chart doesn’t say that. What if people invested $100B into ARK, then she lost $14B of it (a 14% decline), and then people withdrew their money until only $16B remained? A 14% decline can happen to anyone over time. And you are correct in that case that the only reason that fund lost “the most” is because it was bigger to begin with.
I didn’t have to look it up. I invested into 3dfx instead of into Nvidia because I thought they had better technology. I rode it halfway down, then doubled up my position, and then rode it all the way to zero.
“Exiting our strategies now would crystallize losses that lower interest rates and reversions to the mean should transform into meaningful profits during the next few years,” Wood wrote. “We are resolute!”
Question: What if interest rates don’t go lower?
And it seems like the mean is higher than it is now.
