by Tyler Durden
Monday, Apr 26, 2021 - 09:00 AM
We've been documenting Cathie Wood's adventures in active management over at ARK Invest for the better part of the last year and a half now.
What started as a look into how the law of large numbers and Wood's popularity presented numerous pitfalls back in December 2020 has now become something of a financial world soap opera, with many observers watching ARK funds extremely closely as the NASDAQ teeters on the brink of a fever pitch and Tesla hits a patch of rocky road in China.
Most recently, we've written about Wood for several reasons: the first is that she was backed by Bill Hwang, who was at the helm of the massive Archegos Capital blowup that singlehandedly pasted numerous equities to the tune of more than 50% each, while also doling out a multi-billion dollar loss to Credit Suisse and other counterparties caught "holding the hot potato". The link drew obvious comparisons, although we're certain Wood isn't employing the insane leverage that catalyzed Hwang's blowup.