Mentioned in Video:
- The actual story can be found here: https://www.institutionalinvestor.com/article/b1p7fxpzylxgr5/A-Minority-Stakeholder-Wants-to-Take-Control-of-ARK-Cathie-Wood-Is-Pushing-Back
- and here: https://citywireusa.com/professional-buyer/news/cathie-wood-disappointed-by-resolute-move-to-seize-control-of-ark/a1424907
- Learn all about Resolute Investment Managers here: https://www.resolutemanagers.com/
- Read Kelso & Company's incredibly specific and highly detailed materials here: https://www.kelso.com/
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Recently, a minority stakeholder in #ARKInvest called Resolute Investment Managers has announced that it will exercise its option to take a controlling stake in #ARK, much to the dismay of #CathieWood. I believe this is a complete non-issue and is just Resolute flexing their muscles to prevent themselves from being replaced as ARK Invest's main distributor. That does not stop YouTubers from making clickbait videos or retail investors from making panic-based financial decisions. However, Cathie Wood has publicly stated her disapproval of this move and mentioned that ARK Invest's success hinges on transparency, collaboration, and employee ownership. These are very valid concerns, as well as the concern that Cathie Wood *could* leave ARK Invest if Resolute Investment Managers decides to change the way ARK Invest does business. All of ARK Invest's research and publications are freely available at https://ark-invest.com/ If you are worried about ARK Invest's future transparency as a result of Resolute taking a controlling share in them, you can set yourself up for success by downloading their papers from here, right now: https://ark-invest.com/white-papers/
Are you tired of clickbait thumbnails and videos on YouTube? Are you panicking because your favorite funds had some bad news this week? Don't worry, I've aggregated all of the best ideas from the brightest minds on Discord and YouTube. Here are steps that you can take to salvage your portfolio before it definitely crashes and burns on Monday morning. Panic sell right at market open. Hold on to cash until Cathie Wood bails on her own company to start her own company again.
Click every possible click bait video, especially this one multiple times. And finally, make sure to completely change your investment strategy and behavior based on a single headline. OK, so here's what we actually know. Resolute Investment Managers plans to exercise its option to purchase a controlling stake in ARK Invest early next year. This option was included as part of the minority stake that they had july 2016. Cathie Wood released a statement saying that she's disappointed in Resolute's unwelcome notice for its plans to seize control of ARK Invest.
The remarkable success of ARK is rooted in transparency, collaboration and employee ownership. In short, Cathie Wood doesn't want any corporate overlords telling ARK Invest best how to do its job. So who is Resolute Investment Managers? They're a distributor for mutual funds and ETF companies, including ARK Invest. They specialize in distributing for boutique investment firms that offer strong investment solutions like ARK's ETFs, but often lack resources or experience to do the actual distributions and operations themselves. In addition to ETF distribution, Resolute handles services like administrative support, accounting, finance, legal and human resources.
So basically they do all the other stuff that a company needs to run so that company can focus on its actual business. One interesting thing to note from their website is they specifically call out preserving autonomy and allowing for employee ownership. Here are some other highlights, facts and other affiliates Resolute works with besides ARK Invest. Another interesting thing that Cathie Wood called out is Resolute Investment Managers is owned by Kelso and Co. So I did a little digging on them as well.
As you can see, Kelso and Co likes to have meetings, standing up in offices, standing in stairwells, sitting in conference rooms, or if they're feeling especially crazy, combining any number of those things. OK, but seriously, their website is incredibly vague and they appear to just be another private equity firm. Cool. So let's get back to the issue here. Resolute Investment Managers, a company who handles ARK's ETF distribution, is exercising their right as an early investor to own a controlling share of ARk Invest.
Cathie Wood sees this as a threat to their culture of transparency, collaboration and employee ownership. So let's address those key issues now. ARK Invest is radically transparent today. If you're worried about a lack of access to their investment materials, my advice to you would be to go download them. Right now you can visit www.ark-funds.com and www.ark-invest.com to research and download those materials. Links to both of those are available in the description below.
If you're worried that their overall investment philosophy will change due to the greed of their new corporate overlords, I would advise patience. Wait for their next big ideas release, which they do every January, and keep an eye on their major publications, like their white papers and analyst research for change in direction or a drop in quality. If you're worried that their performance will go down due to morale or because their employees have less skin in the game, I advise you to verify that for yourself.
Listen to new podcasts and interviews and see if you notice a change in enthusiasm and if employee morale continues to match your expectations. If you're worried that Cathie Wood will leave, well, that's a real concern and it's always going to be a concern for companies with major figureheads. What if Elon Musk left Tesla or what if he catches the Rony Rona? This is a real risk, but it's currently an unrealized risk. And finally, if you're worried about keeping up with all of the above, well, that's why you're watching this channel.
100 percent of the content on this channel so far covers ARK Invest. So add this to the list of things that I'll be keeping track of. So go ahead, smash that like button. Subscribe if you already haven't. And please do not be these people. This is Ticker Symbol: You, my name is Alex, reminding you that the best investment you can make is in you.
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