Source: Wall Street See
Investors' inner thoughts: If we had known the Ark Fund would lose money, we wouldn't have bought it.
Cathy Wood, known as "Wood Sister" for short, is once again being ridiculed by netizens for an extremely unprofessional and irresponsible remark of "if we had known earlier".
On Monday local time, Cathy Wood, also known as "Wood Sister", posted on X social platform:
If we had known that the market would reward Nvidia and other "six giants stocks" and punish stocks that would be the primary beneficiaries of AI, such as Tesla, the largest AI project on earth, and comprehensive (biotechnology) companies like Recursion Pharmaceuticals, we would have continued to hold Nvidia's stock in ARKK fund.
In short, if I had known that Nvidia's stock would rise, I would not have sold it.
In the eyes of Reddit user r/wallstreetbets, isn't this just a typical "hindsight is 20/20"?
Despite Nvidia's soaring stock price over the past year, Cathy Wood has continued to sell Nvidia in the opposite direction, causing Ark Invest to miss out on over $1.2 billion in huge returns.
Wood did not anticipate Nvidia's skyrocketing performance, and the share price of this chip giant has risen by 170% cumulatively this year, becoming the world's highest market capitalization company in June.
However, the problem is that fund investors spent so much money just to let Wood know in advance that Nvidia's share price would soar.
Some netizens directly commented: "Wood, are you kidding me?"
It is understandable that investors are angry. Fund investors pay Wood to manage their money, expecting her as a professional to make correct predictions and decisions, rather than just saying "if I had known..." which is often uttered by investment novices after the fact.
A netizen with the nickname "18 Decimals" suggested that Wood should simply admit her team's incompetence and how bad their investment strategies are. This netizen also said:
The only advantage of investing in the ARK fund may be to offset the profits of other investments with losses to reduce taxes.
In the comments, netizens have taken out the "clown" expression packs one after another.
Some netizens even said they were "laughing out loud" at Wood.
This statement may be the closest Wood has ever come to apologizing. However, in Monday's post, Wood did not directly admit her mistake, but instead tried to pass it off with the bland phrase "if we had known earlier", which may be one of the reasons for the public outrage.
Netizens do not understand how Wood, who has so many professional analysts, could have missed Nvidia, the center of the AI revolution.
Some have pointed out that Wood's investment decisions and logic seem contradictory.
If Wood really believes in the future of AI, then holding Nvidia's stock is the most direct and wise choice, because Nvidia is the core supplier of AI hardware, and even Tesla, which Wood is bullish on, will use Nvidia chips.
And the reason Wood sold Nvidia is simple: the valuation was too high.
She said in a media interview:
This is a stock with a strong cyclicality. Currently, there is an excessively active state and everyone is excited to enter the market at the same time. Therefore, there are cases of double orders, triple orders, and quadruple orders, and then there will be a position adjustment. We believe that this situation will happen again.
In a recent letter to investors, Wood once again stated that Nvidia stock faces challenges in the short term. The next-generation internet plus-related ETF (ARKW) under the umbrella of Ark Invest still holds Nvidia stocks, but as of June 28th, Nvidia's weight in the fund was only 1.39%.
Will Wood's prediction come true?
Note that a report from Morningstar two months ago showed that Ark Invest lost about 14.3 billion US dollars of wealth in the past decade.
This may answer the following questions from netizens.
PS, maybe some fundholders will think like this:
If we had known that Ark Invest was losing money, we would not have bought it.
Editor/Lambor