I have no view on Tesla's stock or Ark for that matter, but Tesla was a 12.5% position on 9/30 for them, and and 11% position for them as of yesterday. Even if they think Tesla could go to $2000/share, it doesn't make sense from a risk management standpoint to carry a single position at a certain size, especially if there is a wide dispersion in potential outcomes.
ARK has to balance its holding to mitigate for any potential unforeseen risks. Cathy have talked extensively about their strategy of flipped diversification vs. consolidation. Unless we look into what ARK invested those 150k shares into and why, we wont know if it was a sound decision or not.
but they are up 1130% since IPO. I personally dont understand why people use psychological lines such as month/quarter/year or 25/50/100 when none of that really matters. A business is a continuous process and should be looked at as such.
Yes, but you could also have invested your money elsewhere and continued to see growth.
Except for the complexity involving taxes and fees, if your money sits in Tesla shares for a long time and the stock stays flat, then you've lost money. Both in terms of opportunity cost and through inflation.
you can mitigate this buy selling long dated put options on tesla, which hare very , very expensive and can yield a big return even if Tesla does nothing
