Cathie Wood’s ARKK Innovation fund reminds me of the Ark scene from Raiders Of The Lost Ark. “It’s beautiful” proclaims Belloch. Before it turns ugly and kills everyone.
Yes, the ARKK Innovation Fund, managed by Cathie Wood, is high risk (beta = 2.28) and low alpha (excess return) fund with a negative alpha of -0.376. Now, true the standard error of the alpha is larger than the point estimate of alpha, meaning that it is not significants. Bottom like: lots of systematic risk, little or no excess return.
Cathie Wood: “ARKK is beautiful!”
