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Ark Invest CEO Wood says Hwang provided seed capital for first four ETFs

Stock MarketsMay 07, 2021 08:30PM ET
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© Reuters.

(Reuters) - Celebrity stockpicker and Ark Invest Chief Executive Cathie Wood told CNBC on Friday that hedge fund veteran Bill Hwang had provided seed capital for Ark's first four exchange-traded funds.

Wood said she had held discussions with Hwang about U.S. stocks and, in particular, the media sector back in 2013.

"He did provide the seed for our first four ETFs and we were very grateful to him. It was at a time where market makers were sick of seeding new strategies," she said in the CNBC interview.

Archegos Capital Management, the New York investment fund run by former Tiger Asia manager Hwang, was preparing for insolvency as banks involved in financing its trades seek to recoup some of their losses, according to a Financial Times report earlier this week.

Archegos fell apart in March when its debt-laden bets on stocks of certain media companies unraveled.

Wood said she had not spoken to Hwang recently.

"I sent him a note after I heard about the unfortunate events that we've all witnessed and I'm wishing him well," she told CNBC.

Ark Invest CEO Wood says Hwang provided seed capital for first four ETFs
 

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Comments (4)
Sidney Glover
Sidney Glover May 09, 2021 11:20AM ET
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https://www.investopedia.com/terms/l/leverage.aspmathew low, leverage is borrowed money. Ark and all Hedge Funds use it just like Archegos did. no name calling. follow the link to gain knowledge. Ark does use leverage. It is a common strategy. Simp?
Sidney Glover
Sidney Glover May 09, 2021 11:14AM ET
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once you start drawing lines from/to Cathie Wood it becomes clear that she is indeed a celebrity as Madoff was. Her investment strategies of Tesla and FEW others reminds me of Bernie. Some day the media will stop fawning on her and do a real analysis on the trades. by the way, why do so many comments here reflect lack of knowledge of simple english?
Water Bender
Water Bender May 09, 2021 11:14AM ET
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...because many foreigners comment who are not English speaking natives.
Dave Jones
Dave Jones May 08, 2021 8:19PM ET
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Wait..Hwang gave his seed to Wood?
Danny Almog
Danny Almog May 08, 2021 8:19PM ET
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No, looks like Wood put a seed into Hwangs fund
Leon Kelly
Leon Kelly May 07, 2021 7:39PM ET
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small world on wallstreet
Don Getty
Don Getty May 07, 2021 7:39PM ET
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she is very leveraged in several vulnerable area - she could be joining him in trouble if a few of those drop like his investments
Matthew Low
Matthew Low May 07, 2021 7:39PM ET
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Don Getty  That is not what leverage is dummy. Leverage is when you borrow money in order to do your trades. ARK doesn't borrow anything from anyone. They only use the money that investors have given to them.
Petros Kazakidis
Petros Kazakidis May 07, 2021 7:39PM ET
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Absolutely. And all sorts of professional reside in it. But last time I visited an exterminator was nowhere to be found.
CHAD TENDIES
CHAD TENDIES May 07, 2021 7:39PM ET
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Matthew Low found the cathie wood simp
 
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