At the beginning of the new year, US stocks suffered a "Waterloo", and the "culprit" was the leading technology stocks that have always been regarded by the market as "never falling". The Nasdaq composite index, dominated by technology stocks, fell 7.6% last week, the largest weekly decline since the outbreak of the European and American epidemic in March 2020, and fell more than 10% from the high in November last year, falling directly into the "correction territory".
At the same time, among the leading technology stocks, the user growth of streaming media giant Naifei was lower than expected, resulting in a drop of more than 20%, the worst performance in nine years; At the same time, Amazon and Facebook directly enter the bear. In addition, according to Bloomberg data compilation, more than two-thirds of the S & P 500 stocks also entered the "adjustment range", and 149 stocks fell by more than 20%
(5 leading technology stocks "faamg" index trend)
Such a volatile and dismal market has made investors who bet on the "logging" ETF - arkk, the flagship fund of Cathie wood, the head of reverse short ark investment and the "wooden sister" known as the "female Buffett", happy.
"wooden sister" buys a villa near the sea?
"logging" soared 60% in three months, attracting more than $200 million
This "logging" fund Tuttle capital short innovation ETF (Code: Sark) was launched by asset management company Tuttle capital management in early November last year, which is the reverse short fund of arkk. It is worth noting that although the scale of reverse funds is not uncommon in the ETF industry in the United States, the difference between Sark and AARK is that it only focuses on one fund, and all operations are reverse to AARK
the trend of AARK and Sark since December 2021
Although it has only been established for three months, according to Morningstar data, the return rate of this young fund has reached about 60% and attracted about $234 million since its establishment. It has increased by more than 28% in less than a month since 2022. In response, Eric balchunas, senior ETF analyst at Bloomberg, said: "any independent ETF with assets of more than $200 million can be said to have achieved unexpected success, let alone three months before its establishment." James seyffart, another ETF analyst at Bloomberg, also said he was "not surprised" by Sark's gold absorption. He also believed that for ark, "the current trend is still negative".
In contrast to the sharp rise of Sark, arkk, which focuses on short selling, has fallen by 24% since 2022 and more than 50% in the past year.
When arkk fell, Sark shorted arkk through swap contracts, and won a large number of investors' follow-up investment under the trend of sharp decline of technology stocks in US stocks this year. As of January 24, it has realized capital inflow for 10 consecutive trading days.
In addition, Matthew Tuttle, CEO of Tuttle capital management, told the media that Sark also had capital inflows in the days when arkk rose, indicating that investors are increasingly viewing the fund as a hedging tool or a bet on the macro environment, not just to short arkk.
As of the deadline, after the opening of US stocks today, Sark rose 2.55% to US $49.07.
Arkk continued to decline, falling 3.28% to $69.176, with assets of about $21.6 billion.
latest trend of "wooden sister" position:
reduce holdings of JD, Netflix and twitter
suffered a withdrawal of 350 million funds two weeks ago
"Sister Mu" has always been famous for investing in disruptive innovative technology companies. It manages a total of 9 ETFs, including 6 actively managed ETFs and 3 index ETFs. The most famous and accounting for half of its positions is the flagship fund arkk, which once created an amazing annual return of 145% by betting on innovative stocks such as Tesla in 2020. As a result, sister Mu and ark became famous in the first World War.
According to the documents released by the SEC of the US Securities Regulatory Commission, at the beginning of last week (January 18), ark reduced its 99% stake in jd.com, which is almost the same as the end time of Tencent's "dividend style" reduction in jd.com; On January 19, arkk bought intellia, a genome editing company, and also reduced its holdings of 3000 shares of Netflix; On January 20, Naifei fell by 20%, and "Mu Jie" did not copy the bottom, but continued to reduce its position of about 60% of Naifei's shares; On January 21, the NASDAQ fell 2.7%, and "Mu Jie" greatly reduced its holdings of nearly one million twitter shares
(data source of position change of ark on January 21: hket)
In fact, "sister Mu" has been a bit "water retrograde" since the middle of last year. According to Bloomberg statistics, in just one day on January 13, Eastern time, ark innovation ETF (arkk), the flagship fund of ark invest, suffered a withdrawal of $352 million from investors, setting a new high in the scale of single day capital outflow of the fund since March last year.
Perhaps $350 million is just a drop in the bucket for ark. After all, the total size of its nine ETFs is still about $25 billion. Since its peak in February last year, arkk's asset scale has shrunk by about $15 billion, of which only about $1.1 billion comes from the net outflow of funds, and the rest is due to its poor performance. The current trading price of the fund is much lower than the average buying price since its inception
several heavyweight stocks in ark, DocuSign and zoom, fell significantly
But the media pointed out that this may mean that the "iron powder" of "wooden sister" has shaken. After all, ark was founded in 2014, and this $350 million is the third largest one-day capital outflow since the launch of its flagship fund ark
ark flagship fund arkk's performance as of January 15
bearish sentiment intensifies and high-risk assets "return to earth"
Da Mo: it's not the time to copy the bottom!
With the tightening expectation of the Federal Reserve's monetary policy, US stocks experienced the worst week last week. The bearish sentiment of investors was obvious - many investors bought a large number of put options to hedge, which led to the trading volume of put options soared to 30 million on Friday (January 21), setting a new record for the largest one-day trading.
In this regard, Luca Paolini, chief strategist of Baida asset management company, said: "at some times, the impact of the performance of the technology sector on other fields is inevitable. Once [technology stocks] losses affect investor sentiment, everything else will decline."
Andrew slymount, senior investment manager of Morgan Stanley, said that investors should avoid buying when growth stocks are low, because "once the heat fades, it will last for a long time".
He said he didn't think the real big tech stocks were vulnerable, because although the tech stocks had fallen a lot, there was no large-scale selling of these stocks.
He believes that only when this type of bubble burst is rebounded against the trend, for example, they rise a bit, then fall, then rise and then fall. It is only when no one is willing to invest in growth stocks that they hit the bottom and can invest.
In addition, he also suggested that the market is entering an environment to achieve higher growth at the cost of higher inflation. Therefore, in this environment, it is advisable to invest in some "value stocks", but not to throw away all growth stocks to buy all valuable stocks.
