Went in at 342 and 30% down. B_老虎社区_美港股上老虎

2021-05-19

Went in at 342 and 30% down. Back to ipo price level

Why Cathie Wood’s ARKK Is Still Betting on Coinbase<blockquote>为什么Cathie Wood的ARKK仍押注Coinbase</blockquote>

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Back to ipo price level","highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":7,"repostSize":0,"favoriteSize":0,"link":"https://laohu8.com/post/194267396","repostId":1122426626,"repostType":4,"repost":{"id":"1122426626","kind":"news","pubTimestamp":1621382634,"share":"https://www.laohu8.com/m/news/1122426626?lang=zh_CN&edition=full","pubTime":"2021-05-19 08:03","market":"us","language":"en","title":"Why Cathie Wood’s ARKK Is Still Betting on Coinbase<blockquote>为什么Cathie Wood的ARKK仍押注Coinbase</blockquote>","url":"https://stock-news.laohu8.com/highlight/detail?id=1122426626","media":"finance.yahoo","summary":"The overarching narrative of the stock market is in the midst of a deep realignment, with one of Coi","content":"The overarching narrative of the stock market is in the midst of a deep realignment, with one of Coinbase’s largest shareholders at the center of attention. As tech hype cools and interest rates seem poised for a big shift, more speculative “growth” investments, primarily equity in quickly expanding or innovative companies, are having a rough few months. In their place, there’s more interest in so-called “value” investments, such as equity in companies that are already generating profits.<blockquote>股市的总体叙事正处于深度调整之中，Coinbase最大的股东之一成为人们关注的焦点。随着科技炒作降温，利率似乎即将发生重大转变，更具投机性的“增长”投资，主要是快速扩张或创新型公司的股权，正在经历艰难的几个月。取而代之的是，人们对所谓的“价值”投资更感兴趣，例如已经产生利润的公司的股权。</blockquote>That has led to deep losses and varying degrees of embarrassment for investors who’ve made highly forward-looking bets. The tech-focused NASDAQ index has seenbig volatilityand is currently flat against its mid-January level. High-profile professional growth investors likeChamath Palihapitiya, just months ago a relentless and celebrated champion of a kind of less-transparent IPO known as a SPAC, have taken both financial and reputational hits.<blockquote>这给做出高度前瞻性押注的投资者带来了巨大损失和不同程度的尴尬。以科技股为主的纳斯达克指数波动较大，目前与一月中旬的水平持平。像查马斯·帕里哈皮蒂亚(Chamath Palihapitiya)这样备受瞩目的专业成长型投资者，就在几个月前，他还是一种透明度较低的SPAC IPO的无情而著名的拥护者，已经遭受了财务和声誉上的打击。</blockquote>David Z. Morris is CoinDesk’s Chief Insights Columnist.A lot of attention has been focused on Ark Invest, which manages exchange-traded funds investing in things like fintech, genomics, and space exploration. Ark CEO Cathie Wood had become something of an investing rock star in recent years, thanks to a rich45% annualized returnover the past five years in its flagship Innovation Fund, which has grown to more than $50 billion in managed assets.<blockquote>David Z.Morris是CoinDesk的首席见解专栏作家。很多注意力都集中在Ark Invest上，该公司管理着投资于金融科技、基因组学和太空探索等领域的交易所交易基金。Ark首席执行官Cathie Wood近年来已成为投资摇滚明星，这要归功于其旗舰创新基金过去五年高达45%的年化回报率，该基金的管理资产已增长至超过500亿美元。</blockquote>But the fund has dropped by close to 30% since mid-February, thanks to serious collapses of its stakes in everything fromgene-editing to Tesla. ARKK is also one of the largest holders of Coinbase stock, which is similarly down 25% since its IPO on April 14.<blockquote>但自2月中旬以来，该基金已下跌近30%，原因是其在从基因编辑到特斯拉等所有领域的股份严重缩水。ARKK也是Coinbase股票的最大持有者之一，该股票自4月14日IPO以来同样下跌了25%。</blockquote>By and large, these drops have been driven less by disappointing current performance than shifting expectations about the future – arguably the defining risk of growth investing. Because the present price of growth investments is so dependent on projected returns far into the future, small present changes in a company’s results, positive or negative, can translate into huge impacts on the stock. The pandemic has encapsulated this perfectly: lockdowns created major spikes in “stay home” tech stocks because trendlines suddenly pointed to immense future growth, but reopening has pulled those expectations back down to Earth, driving a lot of ARKK’s losses.<blockquote>总的来说，这些下跌与其说是由令人失望的当前业绩推动的，不如说是由对未来预期的转变推动的——这可以说是成长型投资的决定性风险。由于成长型投资的当前价格非常依赖于遥远未来的预期回报，因此公司业绩目前的微小变化，无论是积极的还是消极的，都可能转化为对股票的巨大影响。疫情完美地概括了这一点：封锁导致“呆在家里”科技股大幅飙升，因为趋势线突然指向未来的巨大增长，但重新开放将这些预期拉回到现实，导致ARKK遭受大量损失。</blockquote>(This is, it should be said, far preferable to the way some prominent speculative investments worked in the past. A practice known as mark-to-market accounting was widely abused by entities including Enron and Lehman Brothers in the 1990s and 200os, and basically amounted to letting growth companies disguise themselves as present successes by putting a price on their own future earnings and booking them as present revenue. But that’s a topic for another day.)<blockquote>（应该说，这比过去一些著名的投机性投资的运作方式要好得多。一种被称为按市值计价会计的做法在20世纪90年代和21世纪初被包括安然和雷曼兄弟在内的实体广泛滥用，基本上相当于让成长型公司通过对自己未来的收益定价并将其记为当前的收入，将自己伪装成当前的成功。但这是另一天的话题。）</blockquote>Perhaps even more significant than pandemic reversals are increases inTreasury Bond yieldsand inflation upticks that might lead the Fed to increase interest rates more quickly. Bond yields and interest rates in particular are a direct threat to growth investing because they create more attractive returns on very low-risk investments. At the same time, higher rates make debt and other capital more expensive for growth companies, who typically don’t have the cash flows to fund their own growth.<blockquote>也许比大流行逆转更重要的是国债收益率上升和通胀上升，这可能会导致美联储更快地加息。债券收益率和利率尤其对成长型投资构成直接威胁，因为它们为非常低风险的投资创造了更具吸引力的回报。与此同时，较高的利率使得成长型公司的债务和其他资本更加昂贵，这些公司通常没有现金流来为自己的增长提供资金。</blockquote>There’s no real way to escape these sorts of risks when you’re attempting to monetize the future. What matters is how a growth investor responds, and crucially, whether that response follows the same forward-leaning logic as the initial investing thesis. Wood is catching heat right now because of ARKK’s trouble, but her response has been nothing if not consistent: she has repeatedly and loudly declared that the slump in growth stocks is a buying opportunity, with falling prices only amplifying potential future returns.<blockquote>当你试图将未来货币化时，没有真正的方法可以逃避这些风险。重要的是成长型投资者如何反应，最重要的是，这种反应是否遵循与最初投资论点相同的前瞻性逻辑。由于ARKK的麻烦，伍德现在受到了批评，但她的反应如果不是一致的话就什么都不是：她一再大声宣称成长型股票的暴跌是一个买入机会，价格下跌只会放大未来潜在的回报。</blockquote>Higher rates make debt and other capital more expensive for growth companies, who typically don’t have the cash flows to fund their own growthBecause Ark funds publicize their trades, we know Wood isn’t just talking: ARKK has been steadily buying assets like Square, Twilio, and even Zoom as the stocks head south. The fund is also aggressively buying the dip in Coinbase, growing its position as of today to 624 million shares – 3% of ARKK’s holdings and, incredibly, more than 10% of all Coinbase shares. That’s particularly bold because Coinbase could be described as a growth investment squared: its own growth deeply dependent on demand for assets that are, in turn, highly speculative themselves.<blockquote>较高的利率使得成长型公司的债务和其他资本更加昂贵，这些公司通常没有现金流来为自己的增长提供资金。因为Ark基金公开了他们的交易，我们知道伍德不仅仅是在说说而已：ARKK一直在稳步购买Square、Twilio等资产，甚至随着股票下跌而变焦。该基金还积极逢低买入Coinbase，截至今天，其持仓量已增至6.24亿股，占ARKK持股的3%，令人难以置信的是，占Coinbase所有股票的10%以上。这一点尤其大胆，因为Coinbase可以被描述为增长投资的平方：其自身的增长在很大程度上依赖于对资产的需求，而这些资产本身又具有高度投机性。</blockquote>I assume Wood’s belief in her bets is sincere, but it’s also just good optics for a growth fund. Halting buys on Coinbase or other bets as they go down would be an implicit admission that previous buys at higher prices were a mistake. Buying an asset that’s slumping short-term is a strong signal of long-term belief.<blockquote>我认为伍德对她的赌注的信念是真诚的，但这对于成长型基金来说也是很好的选择。在Coinbase或其他押注下跌时停止买入，将含蓄地承认之前以更高价格买入是一个错误。购买短期下跌的资产是长期信念的强烈信号。</blockquote>Wood’s consistency, along with her track record, appear to have been fairly effective in helping investors keep the faith even in the face of short-term losses. It’s inevitable some will reflexively sell a ticker that drops 30% in four months, but according to Seeking Alpha, ARKK only saw$1 billion in capital outflows, or around 2% of the fund’s total assets, over the past week.<blockquote>伍德的一致性以及她的业绩记录似乎相当有效地帮助投资者保持信心，即使面对短期损失。有些人不可避免地会本能地出售四个月内下跌30%的股票，但根据Seeking Alpha的数据，ARKK在过去一周仅出现了10亿美元的资本外流，约占该基金总资产的2%。</blockquote>That’s far from amazing, and at that rate it could add up quickly, but it’s also far from a worst-case scenario. Selling future profits to present buyers is as much about credibility and faith as it is about numbers.<blockquote>这一点也不令人惊讶，按照这个速度，它可能会很快增加，但也远不是最坏的情况。将未来的利润卖给现在的买家既关乎数字，也关乎信誉和信念。</blockquote>","source":"lsy1612507957220","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Cathie Wood’s ARKK Is Still Betting on Coinbase<blockquote>为什么Cathie Wood的ARKK仍押注Coinbase</blockquote></title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 12.5px; color: #7E829C; margin: 0;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Cathie Wood’s ARKK Is Still Betting on Coinbase<blockquote>为什么Cathie Wood的ARKK仍押注Coinbase</blockquote>\n</h2>\n<h4 class=\"meta\">\n\nfinance.yahoo2021-05-19 08:03\n\n</h4>\n</header>\n<article>\nThe overarching narrative of the stock market is in the midst of a deep realignment, with one of Coinbase’s largest shareholders at the center of attention. As tech hype cools and interest rates seem poised for a big shift, more speculative “growth” investments, primarily equity in quickly expanding or innovative companies, are having a rough few months. In their place, there’s more interest in so-called “value” investments, such as equity in companies that are already generating profits.<blockquote>股市的总体叙事正处于深度调整之中，Coinbase最大的股东之一成为人们关注的焦点。随着科技炒作降温，利率似乎即将发生重大转变，更具投机性的“增长”投资，主要是快速扩张或创新型公司的股权，正在经历艰难的几个月。取而代之的是，人们对所谓的“价值”投资更感兴趣，例如已经产生利润的公司的股权。</blockquote>That has led to deep losses and varying degrees of embarrassment for investors who’ve made highly forward-looking bets. The tech-focused NASDAQ index has seenbig volatilityand is currently flat against its mid-January level. High-profile professional growth investors likeChamath Palihapitiya, just months ago a relentless and celebrated champion of a kind of less-transparent IPO known as a SPAC, have taken both financial and reputational hits.<blockquote>这给做出高度前瞻性押注的投资者带来了巨大损失和不同程度的尴尬。以科技股为主的纳斯达克指数波动较大，目前与一月中旬的水平持平。像查马斯·帕里哈皮蒂亚(Chamath Palihapitiya)这样备受瞩目的专业成长型投资者，就在几个月前，他还是一种透明度较低的SPAC IPO的无情而著名的拥护者，已经遭受了财务和声誉上的打击。</blockquote>David Z. Morris is CoinDesk’s Chief Insights Columnist.A lot of attention has been focused on Ark Invest, which manages exchange-traded funds investing in things like fintech, genomics, and space exploration. Ark CEO Cathie Wood had become something of an investing rock star in recent years, thanks to a rich45% annualized returnover the past five years in its flagship Innovation Fund, which has grown to more than $50 billion in managed assets.<blockquote>David Z.Morris是CoinDesk的首席见解专栏作家。很多注意力都集中在Ark Invest上，该公司管理着投资于金融科技、基因组学和太空探索等领域的交易所交易基金。Ark首席执行官Cathie Wood近年来已成为投资摇滚明星，这要归功于其旗舰创新基金过去五年高达45%的年化回报率，该基金的管理资产已增长至超过500亿美元。</blockquote>But the fund has dropped by close to 30% since mid-February, thanks to serious collapses of its stakes in everything fromgene-editing to Tesla. ARKK is also one of the largest holders of Coinbase stock, which is similarly down 25% since its IPO on April 14.<blockquote>但自2月中旬以来，该基金已下跌近30%，原因是其在从基因编辑到特斯拉等所有领域的股份严重缩水。ARKK也是Coinbase股票的最大持有者之一，该股票自4月14日IPO以来同样下跌了25%。</blockquote>By and large, these drops have been driven less by disappointing current performance than shifting expectations about the future – arguably the defining risk of growth investing. Because the present price of growth investments is so dependent on projected returns far into the future, small present changes in a company’s results, positive or negative, can translate into huge impacts on the stock. The pandemic has encapsulated this perfectly: lockdowns created major spikes in “stay home” tech stocks because trendlines suddenly pointed to immense future growth, but reopening has pulled those expectations back down to Earth, driving a lot of ARKK’s losses.<blockquote>总的来说，这些下跌与其说是由令人失望的当前业绩推动的，不如说是由对未来预期的转变推动的——这可以说是成长型投资的决定性风险。由于成长型投资的当前价格非常依赖于遥远未来的预期回报，因此公司业绩目前的微小变化，无论是积极的还是消极的，都可能转化为对股票的巨大影响。疫情完美地概括了这一点：封锁导致“呆在家里”科技股大幅飙升，因为趋势线突然指向未来的巨大增长，但重新开放将这些预期拉回到现实，导致ARKK遭受大量损失。</blockquote>(This is, it should be said, far preferable to the way some prominent speculative investments worked in the past. A practice known as mark-to-market accounting was widely abused by entities including Enron and Lehman Brothers in the 1990s and 200os, and basically amounted to letting growth companies disguise themselves as present successes by putting a price on their own future earnings and booking them as present revenue. But that’s a topic for another day.)<blockquote>（应该说，这比过去一些著名的投机性投资的运作方式要好得多。一种被称为按市值计价会计的做法在20世纪90年代和21世纪初被包括安然和雷曼兄弟在内的实体广泛滥用，基本上相当于让成长型公司通过对自己未来的收益定价并将其记为当前的收入，将自己伪装成当前的成功。但这是另一天的话题。）</blockquote>Perhaps even more significant than pandemic reversals are increases inTreasury Bond yieldsand inflation upticks that might lead the Fed to increase interest rates more quickly. Bond yields and interest rates in particular are a direct threat to growth investing because they create more attractive returns on very low-risk investments. At the same time, higher rates make debt and other capital more expensive for growth companies, who typically don’t have the cash flows to fund their own growth.<blockquote>也许比大流行逆转更重要的是国债收益率上升和通胀上升，这可能会导致美联储更快地加息。债券收益率和利率尤其对成长型投资构成直接威胁，因为它们为非常低风险的投资创造了更具吸引力的回报。与此同时，较高的利率使得成长型公司的债务和其他资本更加昂贵，这些公司通常没有现金流来为自己的增长提供资金。</blockquote>There’s no real way to escape these sorts of risks when you’re attempting to monetize the future. What matters is how a growth investor responds, and crucially, whether that response follows the same forward-leaning logic as the initial investing thesis. Wood is catching heat right now because of ARKK’s trouble, but her response has been nothing if not consistent: she has repeatedly and loudly declared that the slump in growth stocks is a buying opportunity, with falling prices only amplifying potential future returns.<blockquote>当你试图将未来货币化时，没有真正的方法可以逃避这些风险。重要的是成长型投资者如何反应，最重要的是，这种反应是否遵循与最初投资论点相同的前瞻性逻辑。由于ARKK的麻烦，伍德现在受到了批评，但她的反应如果不是一致的话就什么都不是：她一再大声宣称成长型股票的暴跌是一个买入机会，价格下跌只会放大未来潜在的回报。</blockquote>Higher rates make debt and other capital more expensive for growth companies, who typically don’t have the cash flows to fund their own growthBecause Ark funds publicize their trades, we know Wood isn’t just talking: ARKK has been steadily buying assets like Square, Twilio, and even Zoom as the stocks head south. The fund is also aggressively buying the dip in Coinbase, growing its position as of today to 624 million shares – 3% of ARKK’s holdings and, incredibly, more than 10% of all Coinbase shares. That’s particularly bold because Coinbase could be described as a growth investment squared: its own growth deeply dependent on demand for assets that are, in turn, highly speculative themselves.<blockquote>较高的利率使得成长型公司的债务和其他资本更加昂贵，这些公司通常没有现金流来为自己的增长提供资金。因为Ark基金公开了他们的交易，我们知道伍德不仅仅是在说说而已：ARKK一直在稳步购买Square、Twilio等资产，甚至随着股票下跌而变焦。该基金还积极逢低买入Coinbase，截至今天，其持仓量已增至6.24亿股，占ARKK持股的3%，令人难以置信的是，占Coinbase所有股票的10%以上。这一点尤其大胆，因为Coinbase可以被描述为增长投资的平方：其自身的增长在很大程度上依赖于对资产的需求，而这些资产本身又具有高度投机性。</blockquote>I assume Wood’s belief in her bets is sincere, but it’s also just good optics for a growth fund. Halting buys on Coinbase or other bets as they go down would be an implicit admission that previous buys at higher prices were a mistake. Buying an asset that’s slumping short-term is a strong signal of long-term belief.<blockquote>我认为伍德对她的赌注的信念是真诚的，但这对于成长型基金来说也是很好的选择。在Coinbase或其他押注下跌时停止买入，将含蓄地承认之前以更高价格买入是一个错误。购买短期下跌的资产是长期信念的强烈信号。</blockquote>Wood’s consistency, along with her track record, appear to have been fairly effective in helping investors keep the faith even in the face of short-term losses. It’s inevitable some will reflexively sell a ticker that drops 30% in four months, but according to Seeking Alpha, ARKK only saw$1 billion in capital outflows, or around 2% of the fund’s total assets, over the past week.<blockquote>伍德的一致性以及她的业绩记录似乎相当有效地帮助投资者保持信心，即使面对短期损失。有些人不可避免地会本能地出售四个月内下跌30%的股票，但根据Seeking Alpha的数据，ARKK在过去一周仅出现了10亿美元的资本外流，约占该基金总资产的2%。</blockquote>That’s far from amazing, and at that rate it could add up quickly, but it’s also far from a worst-case scenario. Selling future profits to present buyers is as much about credibility and faith as it is about numbers.<blockquote>这一点也不令人惊讶，按照这个速度，它可能会很快增加，但也远不是最坏的情况。将未来的利润卖给现在的买家既关乎数字，也关乎信誉和信念。</blockquote>\n<div class=\"bt-text\">\n\n\n 来源：<a href=\"https://finance.yahoo.com/news/why-cathie-wood-arkk-still-211733720.html\">finance.yahoo</a>\n为提升您的阅读体验，我们对本页面进行了排版优化\n\n\n</div>\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"COIN":"Coinbase Global, Inc."},"source_url":"https://finance.yahoo.com/news/why-cathie-wood-arkk-still-211733720.html","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1122426626","content_text":"The overarching narrative of the stock market is in the midst of a deep realignment, with one of Coinbase’s largest shareholders at the center of attention. As tech hype cools and interest rates seem poised for a big shift, more speculative “growth” investments, primarily equity in quickly expanding or innovative companies, are having a rough few months. In their place, there’s more interest in so-called “value” investments, such as equity in companies that are already generating profits.That has led to deep losses and varying degrees of embarrassment for investors who’ve made highly forward-looking bets. The tech-focused NASDAQ index has seenbig volatilityand is currently flat against its mid-January level. High-profile professional growth investors likeChamath Palihapitiya, just months ago a relentless and celebrated champion of a kind of less-transparent IPO known as a SPAC, have taken both financial and reputational hits.David Z. Morris is CoinDesk’s Chief Insights Columnist.A lot of attention has been focused on Ark Invest, which manages exchange-traded funds investing in things like fintech, genomics, and space exploration. Ark CEO Cathie Wood had become something of an investing rock star in recent years, thanks to a rich45% annualized returnover the past five years in its flagship Innovation Fund, which has grown to more than $50 billion in managed assets.But the fund has dropped by close to 30% since mid-February, thanks to serious collapses of its stakes in everything fromgene-editing to Tesla. ARKK is also one of the largest holders of Coinbase stock, which is similarly down 25% since its IPO on April 14.By and large, these drops have been driven less by disappointing current performance than shifting expectations about the future – arguably the defining risk of growth investing. Because the present price of growth investments is so dependent on projected returns far into the future, small present changes in a company’s results, positive or negative, can translate into huge impacts on the stock. The pandemic has encapsulated this perfectly: lockdowns created major spikes in “stay home” tech stocks because trendlines suddenly pointed to immense future growth, but reopening has pulled those expectations back down to Earth, driving a lot of ARKK’s losses.(This is, it should be said, far preferable to the way some prominent speculative investments worked in the past. A practice known as mark-to-market accounting was widely abused by entities including Enron and Lehman Brothers in the 1990s and 200os, and basically amounted to letting growth companies disguise themselves as present successes by putting a price on their own future earnings and booking them as present revenue. But that’s a topic for another day.)Perhaps even more significant than pandemic reversals are increases inTreasury Bond yieldsand inflation upticks that might lead the Fed to increase interest rates more quickly. Bond yields and interest rates in particular are a direct threat to growth investing because they create more attractive returns on very low-risk investments. At the same time, higher rates make debt and other capital more expensive for growth companies, who typically don’t have the cash flows to fund their own growth.There’s no real way to escape these sorts of risks when you’re attempting to monetize the future. What matters is how a growth investor responds, and crucially, whether that response follows the same forward-leaning logic as the initial investing thesis. Wood is catching heat right now because of ARKK’s trouble, but her response has been nothing if not consistent: she has repeatedly and loudly declared that the slump in growth stocks is a buying opportunity, with falling prices only amplifying potential future returns.Higher rates make debt and other capital more expensive for growth companies, who typically don’t have the cash flows to fund their own growthBecause Ark funds publicize their trades, we know Wood isn’t just talking: ARKK has been steadily buying assets like Square, Twilio, and even Zoom as the stocks head south. The fund is also aggressively buying the dip in Coinbase, growing its position as of today to 624 million shares – 3% of ARKK’s holdings and, incredibly, more than 10% of all Coinbase shares. That’s particularly bold because Coinbase could be described as a growth investment squared: its own growth deeply dependent on demand for assets that are, in turn, highly speculative themselves.I assume Wood’s belief in her bets is sincere, but it’s also just good optics for a growth fund. Halting buys on Coinbase or other bets as they go down would be an implicit admission that previous buys at higher prices were a mistake. Buying an asset that’s slumping short-term is a strong signal of long-term belief.Wood’s consistency, along with her track record, appear to have been fairly effective in helping investors keep the faith even in the face of short-term losses. It’s inevitable some will reflexively sell a ticker that drops 30% in four months, but according to Seeking Alpha, ARKK only saw$1 billion in capital outflows, or around 2% of the fund’s total assets, over the past week.That’s far from amazing, and at that rate it could add up quickly, but it’s also far from a worst-case scenario. Selling future profits to present buyers is as much about credibility and faith as it is about numbers.","news_type":1,"symbols_score_info":{"COIN":0.9}},"isVote":1,"tweetType":1,"viewCount":508,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":41,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/194267396"}