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I do enjoy how so many people here have been harping on the “imminent $ARKK blowup!” and all the dudes (note) who’ve blown up YTD are the traditional HF BSDs a lotta guys admire but who clearly were just betting on black repeatedly and have no sense of risk management
Also ARKK literally cannot blow up because they are not using leverage, unlike this guy who was apparently 5x levered in a concentrate book and “hedged” with index futures.
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For all the talk of concentration and liquidity risk in ARKK, they are much more prudently risk managed than a lot of HFs simply because they are long only and unlevered.
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they are not going to blow up in the levered sense, but it might be like in a Janus-circa-2000 sense, where: constant inflows>buy your own names>portfolio/AUM rises at some point becomes: constant outflows>sell your own names>portfolio/AUM drops
End of conversation
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