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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
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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.
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
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