Cathie Wooden’s ARK Finds Positive aspects and Ache in Cash-Dropping Corporations

More than half of the companies in Cathie Wood’s five popular publicly traded funds at ARK Investment Management LLC were unprofitable over the past year. Analysts believe this will increase the volatility of these funds in the months ahead.

According to an analysis by Dow Jones Market Data, 85 of the 165 stocks in ARK’s actively managed ETFs caused net losses in recent fiscal years. That made the money particularly prone to dramatic fluctuations when investors turned their backs on growth stocks in favor of stocks that shine when the economy thrives.

In spite of Tech stocks rebound this weekAll five of ARK’s ETFs are down at least 18% from their mid-February highs, trailing the Nasdaq Composite, which is down 7.3% from the February 12 record.

Performance of the holdings of the five actively managed ETFs from ARK

The pain was greatest with stocks of unprofitable companies in ARK’s funds. According to a DJMD analysis of ARK’s holdings and FactSet data, these stocks fell an average of 23% over the past month, while profitable stocks fell 10% over the same period.

“These stocks are inherently riskier than the broader market,” said Ben Johnson, director of global ETF research at Morningstar.

A spokeswoman for ARK declined to comment. However, Ms. Wood has chosen television and YouTube to reassure her investors and stresses that the company continues to stick to its strategy.

“We’re as excited as always about everything we’re doing. The past few weeks have done nothing but increase the returns we expect from each of our stocks as they have fallen, ”Ms. Wood said in a video posted on YouTube last week and over Has received 700,000 views.

ARK’s high profile positions include streaming companies

year Inc.,

Home sales website

Zillow group Inc.

and music service

Spotify technology TO,

None of them made a profit in their most recent annual reports. The stocks of these and many other unprofitable companies include several ARK funds.

Teladoc health Inc.,

For example, four of the five ETFs have a combined position worth $ 2.3 billion. The virtual medical service provider has reported losses every year since it went public in 2015, including a loss of $ 485 million last year.

Of the 56 stocks in the flagship innovation fund, 36 did not generate any profits in the last few financial years, according to an analysis of company holdings. ARK’s Genomics Fund, which is down 5.4% so far this year, has even more exposure to unprofitable companies. 43 of its 57 holdings reported losses last year. In the three other ARK funds, at least around a quarter of the companies represented achieved no results in the past year.

Investors have long relied on valuation metrics like price-to-earnings ratio to gauge a stock’s prospects. However, such metrics are irrelevant for companies that are not making a profit. Instead, ARK relies on a mix of fantasy and discounted cash flow models, based on near zero interest rates, to justify the high valuations of stocks that have great potential to grow and enter their respective industries, such as cash and cash equivalents

alphabet Inc.’s

Search dominance and Facebook Inc.’s moat around social media.

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Many of ARK’s “disruptive” stocks became gangbusters in 2020 during the Covid-19 pandemic. The innovation ETF has risen by more than 150% in the past year alone and has tripled since its debut in 2014. A flurry of investor inflows followed, allowing ARK to place even bigger bets on the next wave of revolutionary companies.

Another potential problem with ARK investors is the high concentration of funds. For example, the company has a 15% stake in two of its $ 156 million funds in a biomedical products company

Cerus Corp.

The company has not been profitable in more than a decade, most recently recording an annual loss of nearly $ 60 million.

The more an investor owns a particular stock, the harder it is to add or sell stocks without changing prices. Morningstar released the numbers, noting that it would take more than 52 trading days for the ARK to sell its Cerus shares to get out of the position entirely to avoid a material shift in the share price to the detriment of its own investors.

Cerus’ shares are down 17% over the past month. According to Cathiesark.com, a website that tracks ARK’s trading activity and tracks ARK’s trading activity, the redemptions appear to have resulted in ARK’s funds losing more than 2 million shares between February 22nd and March 9th possibly exacerbating the decline in Cerus.

“That is the primary concern in portfolio management,” said Saumen Chattopadhyay, chief investment officer at asset management firm Carson Group, regarding the concentration. “If the bubble bursts, such funds can be made up.”

ARK doesn’t change its approach. Executives, including Ms. Wood, said volatility is hitting the market and their funds will be short-lived. Over the past few weeks, the company has been selling more liquid stocks to buy stocks of companies it claims to have higher convictions about, including smaller, harder-to-trade, and in some cases, unprofitable stocks. These purchases include Roku and

908 devices Inc.,

a chemical analysis company valued at just over $ 1 billion.

Ms. Wood said on her video last week that the funds had no trading or liquidity issues.

“We’re not in a bubble,” she added.

Write to Michael Wursthorn Michael.Wursthorn@wsj.com

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Tiger Woods’ accidents are ‘harder to heal,’ says surgeon

The orthopedic surgeon Dr. Scott Boden explained the extent of Tiger Woods’ injuries and what his recovery could look like at CNBCs “The News with Shepard Smith” after the golfer’s devastating fall on Tuesday morning.

“We know it’s an open fracture, which means that the bone has at least temporarily entered the skin and broken in multiple places. This was a very high-energy fracture that makes it a little more difficult.” to heal, “said the professor of orthopedic surgery at Emory University School of Medicine.

Los Angeles County Sheriff Alex Villanueva said Woods was fortunate to be alive after crashing his sport utility vehicle on a steep, winding road in Palos Verdes, south of Los Angeles.

Tiger Woods is “awake, responsive, and recovering” from lengthy surgery to repair what a doctor called a “major injury” to his right leg Explanation posted through his official Twitter account on Wednesday at 12:30 p.m. ET. It is the 10th operation for the 45 year old golfer.

Dr. Anish Mahajan, chief medical officer at Harbor-UCLA Medical Center, said Woods suffered “comminuted open fractures” in the upper and lower portions of his right leg. To stabilize Wood’s leg, doctors had to insert a rod, screws, and pins into his foot and ankle.

Boden told host Shepard Smith that the additional information about the golfer’s ankle and foot injuries says a lot about recovery time.

“If these injuries affect the smooth articular surface of the bones on which they move in the ankle or foot, it could be a problem in long-term recovery and arthritis and restore full range of motion,” Boden said in a Wednesday evening interview.

Boden also noted that “there is a risk of infection” but that we do not know the size of the skin opening so “we cannot be sure about it”. He added that while the rebound will be tenacious, “it is never advisable to count tigers when it comes to making a comeback.”

Tiger Woods crashes automotive, golf star recovering after emergency surgical procedure

A luxury SUV driven by Tiger Woods crashed and rolled over in Southern California on Tuesday morning. The golf superstar was seriously injured, the authorities and his agent said.

According to a statement posted on his Twitter account, Woods is “awake, reacting and recovering in his hospital room” after an emergency operation.

Dr. Anish Mahajan, chief medical officer and interim CEO of Harbor-UCLA Medical Center, said Woods sustained “significant orthopedic injuries” to his right lower leg.

A rod was introduced to stabilize his tibia and femoral bones, while a “combination of screws and pins” was used to stabilize injuries to the bones of his foot and ankle, the statement said on Woods’ Twitter account.

Woods, who was the only person in the Genesis GV80 SUV, was trapped in the wreckage that occurred after hitting a mean mean on the road and then crashed into a paintbrush just before 7:12 a.m. PT. A neighbor of the crash scene named 911.

Los Angeles County Sheriff Alex Villanueva said Woods was “traveling at a relatively higher speed than normal”.

Woods was freed from the vehicle by firefighters and then taken to Harbor UCLA, a major trauma center.

Villanueva said at a press conference that MPs responding to the scene saw “no sign of impairment” on Woods.

Since there was no sign of impairment, Villaneuva said, “There was no effort to draw blood in the hospital.”

Woods was conscious and able to communicate with MPs.

“I spoke to him. I asked his name. He told me his name was Tiger and that was when I recognized him straight away,” deputy Carlos Gonzalez told reporters.

“It is very lucky that Mr. Woods got out alive,” said Gonzalez.

The scene of the accident on the border between Rolling Hills Estates and Rancho Palos Verdes is known to the police due to the frequency of the accidents and the tendency of drivers to exceed the speed limit.

The front end of the SUV was destroyed. Woods likely survived the single car accident because the interior of the SUV was left intact, an official said. The Genesis has 10 airbags.

Woods was wearing a seat belt during the crash, officials said.

They also said there were no skid marks on the scene and “no signs of braking”.

LA County Sheriff’s officers are investigating an accident involving golfer Tiger Woods on Hawthorne Blvd. in Rancho Palos Verdes, February 23, 2021.

Wally Skalij | Los Angeles Times | Getty Images

Woods, 45, was at Rolling Hills Resort last week after hosting the Genesis Invitational tournament. He shot under a contract with Golf Digest and the Discovery Channel.

His agent, Mark Steinberg, said in a statement, “Tiger Woods was in a car accident in California this morning in which he sustained multiple leg injuries.”

“He is currently in surgery and we thank you for your privacy and assistance,” Steinberg said.

Last month Woods announced that he had “recently” had a fifth microdisectomy on his back to remove a pressurized disc fragment that caused him pain during the PNC championship in Orlando, Florida in December, the last competition prepared.

He played in this tournament with his 11 year old son Charlie. The duo came in seventh.

“I’m looking forward to starting training and focusing on getting back on tour,” Woods said in a January statement.

Tiger Woods watches from the 18th hole during the final round of the Genesis Invitational golf tournament at the Riviera Country Club in Pacific Palisades, California on February 21, 2021.

Brian Rothmüller | Icon Sportswire | Getty Images

The resident of Jupiter, Florida has won 82 PGA titles, most associated with Sam Snead. He has won 15 major championships, including five Masters tournaments.

PGA Commissioner Jay Monahan said in a statement, “”We were made aware of the Tiger Woods car accident today. We are waiting for more information when he comes out of the operation. “

“On behalf of the PGA TOUR and our players, Tiger is in our prayers and will have our full support when he recovers,” said Monahan.

Sportswear giant Nike, which sponsors Woods, said in a statement: “We follow the news all around Tiger and our thoughts and hearts are with him and his family at this time.”

Woods Equipment and Club Sponsor TaylorMade Gold said: “We are shocked at the news of Tiger Woods’ accident this morning and send our thoughts and prayers to him, his family and his team as they assist him through his operation recovery . “

Wood’s stellar career was shaken in November 2009 when he crashed an SUV into a fire hydrant one morning outside his then home in Windermere, Florida.

Woods was knocked unconscious for more than five minutes in that accident, and his then-wife, Elin Nordegren, reportedly used a golf club to smash a window in the vehicle and pull it out.

After this mysterious crash, Woods is said to have had numerous extramarital affairs. Soon after, he entered a Mississippi clinic for treatment.

In May 2017, Woods was charged with driving under the influence in Florida after police discovered him sleeping in a damaged car. He later apologized and issued a statement to several reporters saying that he assumed full responsibility for the arrest, which he attributed to “an unexpected reaction” to a mixture of prescribed drugs.

“I want the public to know it’s not alcohol,” Woods said at the time.

“I would like to wholeheartedly apologize to my family, friends and fans. I also expect more from myself,” said Woods. “I will do everything in my power to make sure this never happens again.”

A month after this arrest, Woods entered a clinic for treatment for problems with prescription pain medication and a sleep disorder.

Steinberg said at the time that Woods used pain medication to get up and move around while he was recovering of four back operations.

Top golfer Justin Thomas Choked on Tuesday speaking about Woods at a press conference.

“I have a stomach problem. It hurts to see that one of my closest friends is in an accident and I just hope he’s okay,” Thomas told reporters. “I’m just worried about his children. I’m sure they are fighting.”

Woods was spotted on social media on a golf course with former Miami Heat basketball star Dwyane Wade on Monday.

Actor David Spade also tweeted a photo of himself with Woods on the course on Monday.

On Sunday, during an interview with CBS Sports, Woods was asked if he would play at the Georgia Masters tournament in August.

“God I hope so,” said Woods.

“I have to get there first. Much of it is based on my surgeons, my doctors and my therapists, and getting it right because this is the only back I have, so I don’t have much wiggle room here.”

– CNBC’s Jessica Golden, Amanda Macias and Christine Wang contributed to this report.