Every night, an email comes out from Ark Investment Management highlighting the stocks that were bought or sold by the firm's ETFs. In recent months, the emails have been known to cause certain stocks to spike in the after-hours session.
Ark Founder and CEO Cathie Wood joined Benzinga for an interview and discussed why Ark does this and why it's important.
Daily Email: The ETF world was suspicious of how active management of an ETF would look like. This led to Wood issuing a daily email showing trades that the Ark Funds bought and sold each day.
The daily email includes transactions made for Ark Innovation ETF (NYSE:ARKK), Ark Next Generation Internet ETF (NYSE:ARKW), Ark Fintech Innovation ETF (NYSE:ARKF) and Ark Genomic Revolution ETF (BATS:ARKG).
“Many appreciate our transparency, willingness to educate,” Wood said. “We got such great feedback.”
Wood said the firm can’t have selective disclosure, so it's an all-or-nothing thing and they're willing to send the trades to everyone.
“We’ll disclose our trades once we make them," she said.
See Also: 'What's The Reason Not To Diversify?' Cathie Wood Talks Bitcoin Hitting $400,000, Rise Of NFTs
Copycat Trades: Wood doesn’t worry too much about investors copying her trades and it leading to higher prices when the fund tries to buy additional shares.
“We get plenty of opportunities to buy into a position,” Wood said.
The Ark Funds founder said she doesn’t feel like the company is giving away too much information by sharing the daily emails. There are even YouTube channels and websites dedicated to sharing the trades that Wood makes, which she has noticed.
“We knew it was gaining traction," Wood said.
Educate Investors: Wood calls the models put out by Ark Funds the most robust for the buy-side industry. The firm puts out reports and shares its daily transactions to help educate investors.
“We invested in research and marketing,” Wood said. Social media helps the company’s transparency.
Original publication: March 03, 2021 5:55pm
