Cathie Wood - Rotation to Value

[Scooterd]

I'm cleaning up the kitchen and listening to Cathie Wood in the background.Josh (don't know his last name ) asks her a direct concise Fama-French question regarding Inflationary markets and historical Value vs Growth rotation within rising rate environments....and she goes on to cite Wright's Law (precursor to Moores Law) which she never states by name. While her rambling dissertation after may have gotten her an A in an academic environment (trying to draw a correlation between innovation and the doubling of production reduces costs X%) She did nothing to address:

1. Josh's question
2. Provide guidance to soothe her investors they have a steady hand at the wheel and why they should stick with her given the present market environment / and rotation.

I don't believe I am being harsh, Cathie may be brilliant for all I know, but she has no grasp that this is peoples hard earned monies they have invested with her, and she did nothing to comfort them during the interview (tone deaf) that her funds can rebound (or at least hit a floor) in this present environment when she has such high concentration in out of favor stocks.

I suppose their are those who can afford to have dead monies for an unknown number of years willing to ride it out to see if her thesis proves out. - But she should at least be honest and have stated that those unwilling should not invest in these funds. I've met a lot of Cathie Wood's in my investment lifetime - It never ends well for the retail investor. Will stick within my little sphere of competence and employ my version of the Geraldine Weiss Approach - Dividends don't Lie

- Scoot

“The best investments have a considerable margin of safety. This is Benjamin Graham’s concept of buying at a sufficient discount that even bad luck or the vicissitudes of the business cycle won’t derail an investment. ”- Seth Klarman

[fenders53]

She tells people it's a five year ride, then the masses flee and she has to bail on stocks at a big loss. She is intelligent, but that doesn't make her a good investor. Liquidity isn't coming back soon so this will likely end her career. She has made a fortune on fees because the funds were wildly popular.

[bankerboy]

The one year ride has been a bit harsh…


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[Scooterd]

(02-17-2022, 02:53 PM)fenders53 Wrote: She tells people it's a five year ride...........

Well that's not what she conveyed or how she came across . I actually stopped cleaning to listen more closely. Her Arrogance and Hubris was just astounding.She came off as an unhinged zealot. She is right, everyone else (the market, the fed etc..is wrong).

Rather use her time constructively she came off as it is more important that she is right and as an individual with a huge chip on her shoulder more focused on proving her way is the only way -  investors, the market, the fed be dammed

As I said , I was floored.

[fenders53]

(02-17-2022, 04:30 PM)bankerboy Wrote: The one year ride has been a bit harsh…


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She has been around for decades.  She knew full well a port entirely composed of sky high or no PE stocks would get smoked when rates were hiked.  It actually happened when it was just being discussed.  She was shouting "fake inflation" for six months after every 18yr old that buys groceries and gas knew it was very real.  That was disingenuous.  She knew better months ago.  She is going to go from hero to a mocked forever in just a year or two.  Had she bought a few more major position stocks like NVDA, major pharma etc. she would have had a chance to keep the ship afloat.  If the market has a blow off dip it's going to get even uglier when she is crashing low liquidity stocks she has to trim to cover liquidations.

[mid range]

Scooterd, when challenged, people's capacity for excuse making is nearly unlimited.

[fenders53]

(02-18-2022, 05:17 AM)mid range Wrote: Scooterd, when challenged, people's capacity for excuse making is nearly unlimited.

That is it.  She is under extreme pressure now.  Looking  back, she had maybe an 18 month period of astounding returns.  TSLA does like a 20X and a number of other picks did pretty well in 2020.  She is the queen of growth funds and on CNBC constantly.  Fast forward a year and the sky is falling.  Others are on the media bashing her and even started SARK which is an ETF that shorts ARKK.  She is now mocked daily and on the defense.  CNBC still gives her a voice because it is good drama.  This thread is evidence people will tune in to it.  Our second thread here and they are constant on SA. You could spend 4hrs a day reading ARK/KW debates.

She indeed sounds like a zealot now.  She is forced to trade due to redemptions and is in panic mode.  Preaching longterm while she day trades.  The story of short-term fund manager success is not new, but the rate of the rise and fall is astounding.  Anyone think they could pick a 40 stock basket that will rise over 100% collectively in a year, then fall 60% in a year without leverage?  Probably only about three years that was possible. 1929-1930, 1999-2000, April 2020-present.  And it may not be over.  She may give it all back.

Anyway I enjoyed listening to her before she lost her mind.

[rayray]

cathie wood should be controlling a hedge fund not etf's

she has no business in etf's, mass investors buy in not realizing the risks involved and panic will set in--then when the sells hit she has no choice but to sell in very wrong times

now she has a mess on her hands