Tuttle Capital Returns to the ARK Well

Tuttle Capital Returns to the ARK Well

The firm’s proposed ETFs will offer exposure to not just one ARK fund but five.

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Reviewed by: Lisa Barr
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Edited by: Lisa Barr

Matthew Tuttle of Tuttle Capital Management is looking to re-create the success he had with the $300 million AXS Short Innovation Daily ETF (SARK), a fund he created that was later acquired by AXS Investments, along with the firm’s other funds. Tuttle was briefly employed by AXS after the acquisition but left the issuer after several months. 

This week, his firm filed for two ETFs that will do many of the same things SARK and its sister fund the AXS 2X Innovation ETF (TARK) do, but with some slight differences.

Both of the funds will offer exposure to a portfolio that will have a 50% weighting in the ARK Innovation ETF (ARKK) and 12.5% weightings in each of four funds: the ARK Next Generation Internet ETF (ARKW), the ARK Fintech Innovation ETF (ARKF), the ARK Genomic Revolution ETF (ARKG) and the ARK Autonomous Technology and Robotics ETF (ARKQ)

The funds included in the portfolio represent the five largest ETFs in the ARK lineup. TARK and SARK are solely tied to the performance of ARKK.

The Tuttle Capital 2X All Innovation ETF (UARK) will provide 200% exposure to the portfolio of ARK ETFs, while the Tuttle Capital 2X Inverse All Innovation ETF (ZARK) will provide the exact opposite. Both funds will be actively managed.

Cathie Wood is the closest thing the ETF industry has to a celebrity fund manager, and disruptive innovation is her favorite theme, a concept that underlies every fund in the ARK lineup.

ARKK, her firm’s flagship fund, at one time had $28 billion in assets under management, but it has since dwindled to $7.6 billion. After notching returns in 2020 that topped 150%, the fund was deep in the red the following two years, losing more than 65% in 2022, though it has rebounded somewhat in 2023.

To say that Wood is a controversial figure in the ETF industry is an understatement, with some lauding the ingenuity of her investment approach and others deriding it as high-risk among other criticisms. The proposed funds from Tuttle will allow investors and speculators alike to achieve amped-up exposure to her key portfolios, whether they believe in the validity of her disruptive innovation thesis or not. 

In addition to targeting the strategies of Cathie Wood, Tuttle Capital also offers the Tuttle Inverse Cramer Tracker ETF (SJIM) and the Tuttle Long Cramer Tracker ETF (LJIM) which offer short and long exposure to the recommendations of Mad Money’s Jim Cramer. 

 

Contact Heather Bell at [email protected] 

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.