Asks about ARK's second-largest holding, SpaceX, and how potential IPO/news events affect the fund's position.
Eric
Cathie Wood
Feels great about SpaceX holding; rumors of $1.5T valuation; SpaceX's ecosystem expanding with orbital data centers and XAI.
Asks what happens to the fund when SpaceX IPOs and how ARK will respond.
Speaker3
Cathie Wood
ARK's interval fund is 20% public/80% private; SpaceX IPO would increase public allocation but no forced selling; ARK can feed names into its ETFs over time due to $30B AUM.
Notes conundrum: high demand for privates in ETFs (citing examples where adding SpaceX boosted assets 50% in a week), but ETF format may not be right.
Speaker4
Cathie Wood
Chose interval fund to hold >15% illiquid assets; definition of 'illiquid' may be changing due to SEC deregulation and growing secondary markets.
Confirms some issuers classify privates as 'less liquid' rather than 'illiquid'; asks if ARK considered adding 5-10% privates to ETFs.
Eric
Cathie Wood
Yes, considered but companies reticent due to black swan risk: private positions not marked daily could exceed 15% cap if markets fall.
Asks for take on the 'Debasement Trade'—diversifying from USD into assets like precious metals—noting crypto isn't participating this time.
Speaker3
Cathie Wood
The 'debasement trade' is misplaced; dollar is at higher end of range; pro-business policies (deregulation, tax changes) under 'Trumponomics' will boost US returns on capital, strengthening dollar.
Asks about succession planning at ARK, referencing 'key man risk' commentary.
Speaker3
Cathie Wood
Has firm succession plan with directors of research, chief futurist, analysts, and investment committees for each fund.