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Bill Hwang provided seed funding for Ark ETFs, Cathie Wood reveals

Cathie Wood is the investor Bill Hwang, who lost billions of dollars in the explosion of family office Archegos Capital, playing a central role in launching asset management firm Ark Invest. I made it clear.

In a TV interview on Friday wood He also said he exchanged views with fans on US equities, especially the media sector, in 2013, when Arquegos remained primarily focused on investing in Asia.

Wood created the arc. Exchange Traded Fund After a long career on Wall Street with AllianceBernstein and Jennison Associates, he focused on innovative technology companies in 2014.

“he [Hwang] I am very grateful to him for providing the seeds for the first four ETFs. It was a time when market makers were tired of sowing new strategies. Because I was stuck with $ 2 million in an ETF that went nowhere, “she told CNBC.

“We had to go out and find that seed and building. I heard what I was saying about the company I was about to start .. Very intriguing and we I was very intrigued by the stocks that I was interested in, “she said. “He was just beginning to learn about them.”

The fierce backlash of tech stocks helped push Ark into the top 10 of America’s largest ETF managers, with investors pouring money into the fund. The flagship innovation fund currently has $ 22 billion in assets. The other three fan-seeded Ark funds are its Genome Revolution, Next Generation Internet, and Autonomous Technology and Robotics Funds.

Tree, like a fan Devout ChristianNamed Ark after the gold-covered chest listed in the Book of Exodus, she said she met a former hedge fund manager when she was an adviser to a religious group serving young people on Wall Street.

“On the way back from the event, we were exchanging stock ideas at the time. I know he bought one of the stocks we have a lot of trust in.” Wood said.

A bank that acted as a prime broker Arquegos Fans’ high-leverage bets on a small number of US and Chinese stocks, including media group ViacomCBS, suffered a loss of $ 10 billion in late March after opposed him.

When asked if fans still own any of the shares in Ark’s fund, Wood said the ETFs didn’t know who their shareholders were, adding: But no, there was never such a conversation. “

Many banks seek compensation after suffering losses associated with derivative transactions ArquegosI was preparing for bankruptcy, which the Financial Times reported this week. Washington securities regulators are investigating a catastrophe.

Wood said he hadn’t talked to his fans since the bombing of Arcegos. “After hearing about the unfortunate events we all witnessed, I sent him a note. I hope he gets well,” she told CNBC. “He was there for us in the early days, and we are very grateful to him.”

Bill Hwang provided seed funding for Ark ETFs, Cathie Wood reveals

Source link Bill Hwang provided seed funding for Ark ETFs, Cathie Wood reveals

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