Home Business Cashwood, who predicted a rapid rise in Tesla,’biggest’ with coinbase investment…’money tree sister’ investment method that attracts attention

Cashwood, who predicted a rapid rise in Tesla,’biggest’ with coinbase investment…’money tree sister’ investment method that attracts attention

by news dir

Input 2021.04.17 06:00

Cathie Wood’s Arc Investment, which is called the “money tree sister” among domestic investors, is putting a lot of money into Coinbase, the number 1 cryptocurrency exchange in the U.S. recently listed on Nasdaq, and his investment strategy is drawing attention once again. .

Wood, who gained popularity for’Tesla stock price prediction’, gained more than 100% return on investment through aggressive investment, and became a talker among domestic’seohak ants’, pronounced with’cash’ meaning money. Because of this, he even got the nickname’Don Tree Sister’.

◇ Focused investment on future technologies through ETFs… 171% return of sign fund last year

According to Bloomberg and others on the 15th (local time), the ETFs of ARK, led by Wood, bought 34,1186 shares of Coinbase on that day. On the 14th, the first day Coinbase was listed, Ark bought 740,500 shares. With successive purchases, Ark will hold more than 1 million shares of Coinbase. Based on the closing price of the day (328.5 dollars), it was worth 350 million dollars (about 394 billion won).

Kathy Wood, CEO of Arc Investments. /Chosun DB

Wood has shown a radical investment tendency, saying, “FAANG (Facebook, Apple, Amazon, Netflix, Google) is also a safe asset.” Wood was optimistic about cryptocurrency, saying, “Bitcoin price will go up to 400,000 dollars (450 million won) each,” but he recently increased his investment in Coinbase instead of reducing his investment in Tesla.

In general, while well-known Wall Street investors focus on large rolls of money with hedge funds, Wood’s ArcInvest is an ETF manager. ETFs are not just one stock, but an index-type fund that bundles several companies and invests in a specific sector. While investing in several places has high stability, it is not easy to make a big return.

However, Wood proposed the concept of’active ETF’ and took a strategy to adjust the stocks to be added according to the market conditions, and produced high returns as high as hedge funds. There were three ETFs, including ARK Innovation, that invested in Coinbase.

Arc Investment’s ETF focuses primarily on future technologies. ARK Innovation (ARKK), a flagship ETF that recorded a return of 171% last year, invests more than 65% of its assets in innovative companies. 11.66% of the portfolio is invested in Tesla, followed by fintech company Square (7.02%) and telemedicine company Teladoc (6.08%). It also invested in Zillow, a real estate listing service, and Zoom, a video calling platform.

ARK autonomous technology and robotics ETF (ARKQ) and ARK Next Generation (ARKW) invest more than 80% of their assets in robots and autonomous driving-related companies, and next-generation Internet-related companies, respectively. ARKQ’s flagship portfolio includes agricultural and construction solutions, Trimble, and Chinese internet company Baidu.

Others include ARK Genomic Revolution (ARKG), which invests in medical and biotechnology-related companies, and ARK Fintech Innovation (ARKF), which invests in fintech companies. Recently, it has also launched the’ARK Space Exploration and Innovation ETF’ (ARKX), the 8th ETF investing in space exploration companies.

ARK Innovation portfolio, ARK’s signature ETF. /ETF.com capture

◇ Growth 10 times in 1 year… 50 trillion rolling’don tree sister’ follow-up sales also appeared

Born in 1955 and majoring in economics at the University of Southern California (USC), Wood worked as an economist at the Capital Group and served as Chief Investment Officer at Alliance Burnsteen (AB) for 12 years. Wood created ArkInvest in 2014 and discovered future growth companies with a strategy of’disruptive innovation’.

In February 2018, Tesla’s stock price, which was trapped in the $300 box range after appearing on CNBC Broadcasting at the time, was in a bankruptcy crisis, “will surpass $4,000 (before the 5:1 par) within 5 years. Received. Wood’s words became a reality in three years and won the trust of investors.

The flagship product, Arc Innovation ETF (ARKK), recorded a yield of 171% last year, ranking second among all ETF products, and five out of seven operating products showed a high rate of over 100%. Cash Wood’s success was seen as an investment guide even among Seohak ants, leading to a movement to follow Ark’s portfolio.

Thanks to these results, the operating capital of Arc Invest has grown tenfold in one year, and the operating capital from 5 trillion won has risen sharply to 50 trillion won. It was the third largest after Vanguard Group and Black Rock in terms of the newly inflowed funds.


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