1/ Don't mean to speak for our boy, but I believe @Keubiko is saying is that ARK really isn't a serious money management shop. Perhaps even that ARK is deliberately playing to retail for obvious reasons (Narrator: No institution would take anyone that owns $WKHS seriously.
2/ You remember the breathless reporting from Bloomberg and others that discussed ARK's astronomical asset growth relative to the other big industry players, the real shops, and you might have rightly wondered, "where is the growth coming from?"
3/ I can tell you where it's not coming from - US-based institutions. Hmmm.

Here's a chart of institutional ownership in popular ETF's. The mainline products are widely owned by US institutions - defined as mostly RIA's and broker/dealer platforms.

h/t @TESLAcharts
4/ This level of institutional ownership is almost a joke.
There is a clear play going on to retail by our heroine. More importantly, whose retail? US? South Korea? China? We have made the point repeatedly that $TSLA's junky shareholder base enables games to be played.
5/ You've all seen that gamma squeeze goofiness. This is similar - and really just another extension of the $GME and $AMC nuttiness, which implies the shareholder base in the ARK funds is, um, I don't know, less than stable?
6/ You would be right to wonder how much of this growth has in fact come from overseas, and you would be right to also wonder about the volatility that could be in store in this holdings list, if/when it unravels.
I for one think her flows only stop when one of the sub-$2bn mkt cap names she loves to own implodes and takes returns down with it. There is a reason that professional small-cap managers close funds and cap exposure. And it isn't a love of benchmarks.

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More from @cppinvest

2 Feb
1/ With markets riveted by the action in $GME, attention has been turned to evil short sellers, which is natural. The action in $GME is made more compelling by the breathless reporting in the media that it was so heavily shorted, with more than 100% of its float short. Ooohhh.
2/ You know why investors get involved in heavily shorted names, and keep shorting them?

Because it works.

From March '08 through March '20, the most expensive to borrow US equities underperformed the least expensive to borrow shares by an average of 1.3% per month.
3/ Except for now. January 21 was the worst month in history for the most-heavily-shorted stock factor. And it hasn’t just been January. The rolling 12m average spread between high and low fee shares turned positive recently for and has remained there since.
Read 25 tweets
31 Jan
The con runs deep. Amazing how stupid and gullible people can be.

$TSLA Image
Read 5 tweets
18 Dec 20
Covid isolation is negatively impacting the elderly.

Been visiting my 85 y.o. father-in-law this week. A month ago he fell and broke his hip, had surgery the week before Thanksgiving. Was ornery post-surgery and making slow progress on recovery. His only contact has been with
my mother-in-law and the in-home nurse/aide. He's been sleeping in a hospital bed downstairs in what used to be the living room. He was spending too much time in the bed and in his wheelchair and grouchy. He wants to be in FL and is mad that he isn't. He's mad that he fell.
All perfectly normal and understandable. We show up two days ago, one week after he got home from the hospital. At first he was listless and uncomfortable we were there. We moved the furniture around that was piled up to make room for the bed and other medical equipment.
Read 8 tweets
14 Nov 20
1/ For you youngsters that are unfamiliar with the inner workings of our business, let me translate this. All public registered vehicles are required to have a distributor by statute. Your distributor handles your broker dealer relationships (managing the various platform
2/ requirements and regulatory compliance), and they oversee your factsheets and public communications (as does internal compliance). For that, most statutory distributor relations cost between 5-10 basis points per year. Kelso/Resolute was Ark's distributor.
3/ In addition, many firms also hire distributors or third-party marketing firms to push their products through the broker dealer channel. It used to require a pretty heavy monthly retainer plus a portion of the management fee as compensation. Howevah. . .
Read 13 tweets
14 Nov 20
1/ Here’s an interesting Covid dilemma brought to you by the fucking idiots in local government that can’t think their way out of a paper bag:

85 year old man falls and breaks hip and requires surgery. Leaving aside for the moment the limited to non-existent visiting hours and
2/ the issue that creates (ask any doctor what the typical elderly reaction is to post surgery anesthesia recovery and how being around familiar faces helps), family of said 85 year old is now faced with a dilemma.

What’s the rehab plan?
3/ Normal course would be some time in a rehab facility immediately after to insure physical therapy is maximized and supervised by pros. However, because of nonsensical and draconian reactions to all things Covid, in NY if a congregate care facility is struck by a single case
Read 6 tweets
11 Nov 20
1/ I just listened to a fascinating call arranged by our friends @TweetMacro with John Fund, the Wall Street Journal columnist and author of books on voter fraud. Here’s the punch line: there was undoubtedly fraud in this presidential election but not enough to move the needle.
2/ Fund’s basic point was this election was rife with improprieties – probably more than most – but it’s too much for Trump to prove it in a short timeframe, and then get the establishment that has attempted to thwart him at every turn for four years to do anything about it.
3/ So Trump needs to run the process through to the December meeting of the electoral college, and then concede. But, that doesn’t change Fund’s other important point: we spend too much time on who is in office and not enough on how they got there.
Read 22 tweets

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