Real Money's Doug Kass recently took to his Daily Diary to weigh in on Cathie Wood's move to sell 590,000 shares of Virgin Galactic.
"Months ago I wrote a column, "We All Live In Cathie Wood's World (But That Can Change Quickly)." At the time, ARK Invest (ARKK) - Get Report was riding high - the beneficiary of enormous fund inflows. A lot has changed since then, though many, including the financial media, have not taken the time to analyze what.
In Monday's session, (after recently buying (SPCE) - Get Report) ARK Invest sold nearly 600k shares of Virgin Galactic Holdings (SPCE) . The shares traded at $60/share and closed yesterday at slightly above $22. It was less than four weeks ago that ARK Invest's space exploration fund (ARKX) - Get Report started trading - the week of March 29th - and initiated a 2% position in SPCE (the shares were trading at about $30/share then).
Now it looks to have been sold or is in the process of being sold. The financial media is asleep in their coverage of ARK Invest. By fawning and emphasizing the past successes of ARK and its ETF vehicles - the media's flattering attention is seen through the rear view mirror and not based on a bonafide analysis of the risks (particularly the reduced liquidity in concentrated positions) associated with the ARKK ETF as well as the other ARK Invest vehicles."
In the video above, Jim Cramer responds to the Kass column and gives his latest thoughts on Wood.