Ark Invest's Cathie Wood welcomed the tumble in tech stocks - and revealed Archegos chief Bill Hwang funded the launch of her ETFs
Cathie Woodcelebrated the tech-stock slump as a chance to score higher returns.
Ark Investchief said the sell-off reflected a broadening bull market.
- Wood disclosed that
Archegos Capital's Bill Hwangfunded the launch of her ETFs.
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The Ark chief's flagship innovation
"He did provide the seed for our first four ETFs and we're very grateful to him," Wood continued, emphasizing that Hwang's help was crucial as it was tough to secure funding for ETFs in the early 2010s.She added that she wrote to him after Archegos blew up in March, and doesn't know whether he's still an investor in any of Ark's funds. Archegos imploded after Hwang's aggressively leveraged bets on tech and media stocks soured. Several Wall Street banks slapped him with margin calls, declared him in default when he didn't pay up, and rushed to dump more than $20 billion of his positions in a matter of days.
Credit Suisse and Nomura were among the banks caught out by Archegos' collapse and the subsequent fire sale, and suffered billions of dollars in losses as a result.
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