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ARK Innovation ETF (NYSE:ARKK) down nearly 12% at one point before the market stabilized.
Yet the ARKK fund is now down more than 14% from its February high in less than two weeks, and Seabreeze Partners Management president and ARKK short seller Doug Kass says the worst may be yet to come.
Kass Sees Risk: On Tuesday, Kass said ARK fund manager Cathie Wood has been overly aggressive in investing in overvalued, momentum-driven story stocks.
The explosion in ARK’s assets under management, including $20 billion in inflows in the last three weeks, has now created an extremely risky situation, he said.
Kass: Might This Be the Last Poker Table? When the seats are all inhabited by the sharks, they soon start to devour each other. Stocks quotes in this article: GME, ARKK, TSLA (as Denethor runs by) So passes Denethor, son of Ecthelion That reminds Doug Kass of Seabreeze Partners of the once-hot funds, such as the former Janus Twenty. In every stock market cycle there is a dominant investor who captures the market s zeitgeist by incorporating and reflecting the ideas and beliefs of the times,
- Barron s, Up and Down Wall Street
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Today s Stock Mania Differs From 1999 s, but That Might Not Matter)
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This is Masters in Business with Barry Ritholtz on Bloomberg Radio.
BARRY RITHOLTZ, HOST, MASTERS IN BUSINESS: This week on the podcast, I have an extra, extra special guest. What can I say? Ron Baron, founder of Baron Capital, he’s a legend, I don’t even know where to begin with this guy. He founded Baron Capital in 1982, he performance numbers he’s put up have just been obscene. Everything he does, he seems to find his way to just spectacular returns whether it’s public companies, or private companies, or real estate, just Google search him on East Hampton and the property he bought for $100 million in the midst of the financial real estate collapse in 2007, he turned that into gold.
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ARK Innovation ETF (NYSE: ARKK) has been a top market performer in 2020, gaining 169.7% year-to-date.
Ark Investment and fund manager Cathie Wood have risen to superstardom on Wall Street this year, but Ritholtz Wealth Management portfolio manager Ben Carlson said Wednesday that history doesn’t bode well for Wood or her fund.
In a blog post, Carlson said there are plenty of examples of investors chasing the hottest funds and fund managers. Given the ARK Innovation ETF’s assets under management are up nearly 900% in 2020, Carlson said investors should understand how these types of scenarios have played out in the past.