With insight into ARK's recent investment trends, how does the frequently hit "Wood Sister" resist the cold wind in the market?
Author: Chen Zou
In the past few years, ARK Investment Company has been the talking point of people after dinner. Its fund profitability has far exceeded that of the market, and it has become a blockbuster. Wood is the founder and manager of this investment company. Many people compare her to Warren Buffett and others, so she has the title of female stock god, and she is also one of the strong supporters of encryption innovation.
But even when the female stock gods stumbled, the U.S. stock market continued to retreat on Wednesday, falling sharply across the board. The once-promising ARK Fund was hit especially hard on Wednesday. According to the data of the day, ARKX performed the best in the ARK fund group, only falling 2.8% on the day, while ARKK performed the worst, falling as high as 6.7%.
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you guys are swimming naked
She's fighting back against growing skepticism from investors, telling CNBC in a recent interview that her Ark Investment Management ETF's holdings aren't at bubble levels, but "benchmark" stocks are. : "We're not in a bubble, and if we were, these portfolios would have taken off. I don't think the market has started to reward innovation for what's coming. So that's where our belief comes from. The bubble is in benchmark stocks middle".
The benchmarks she speaks of may be alluding to tech giants Meta (Facebook) (FB), Google, Amazon, Apple, Microsoft. In the interview, Sister Wood also mentioned that this year's market leaders, namely financial and energy stocks, are the most vulnerable.
ARK Innovation ETF ARKK currently holds the largest holdings in Tesla TESLA, Coinbase Global COIN, Teladoc Health TDOC, Roku ROKU and Zoom Video Communications ZM.
For the leading stock TESLA, earlier this year, she predicted that Tesla's stock would reach $3,000 in 2025, which is nearly three times the current stock price. Wood said in September that she would sell her Tesla shares if that level was reached next year.
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"Sister Wood" who is optimistic about Bitcoin
In an interview with "Barron's Weekly" on November 17, "Sister Wood" said that large institutional investors are entering Bitcoin, and pointed out the lack of correlation between cryptocurrencies and other assets. “We can see who is entering (in the crypto market), mostly the large institutional holders. Why are they entering? Because cryptocurrencies, especially bitcoin, are different from other assets – stocks, bonds, currencies, Return correlations between commodities are very low.”
"Studies have shown that if the returns between assets are very low correlated, buying assets with this low correlation, over time, you can improve returns and reduce risk."
She also reiterated her previous price prediction for Bitcoin. “The reason we use $500,000 as a price target for Bitcoin is that if institutional investors get into Bitcoin and allocate 5% of their portfolio to it, Bitcoin will rise to $500,000 based on our estimates. We can This happens by observing on-chain analysis.”
Back in September, Ms. Wood said in an interview with Yahoo Finance that fans of gold did not understand that the value of Bitcoin is not just as a store of value asset.
“What we think [they] are missing is that it’s not just a store of value or digital gold. Bitcoin, in particular, is a new global monetary system. It’s a rules-based monetary policy that’s completely decentralized and thus not subject to the arbitrary whims of policymakers”.
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ARK's recent investment trends
Many investors are racking their brains to find the playing methods and investment portfolios of famous investors and large institutions to obtain considerable returns, but most companies keep their investment portfolios secret. ARK Investment Company is one of the alternatives. The company will publish its transaction list at the end of each trading day for market reference.
The following is a brief introduction to the transactions conducted by ARK Investment Company on December 1, 2021, and also to understand whether the "Queen of the Bull Market" can only gallop in the bull market. In ARK's view, the following fields and companies not only can focus on this year, but also have huge market and investment space in the next few years.
The ARK Fintech Innovation ETF (ARKF) primarily trades stocks of emerging fintech leaders, with some of its largest holdings including Square , Zillow , Pinterest , PayPal and Alibaba. The fund's net assets currently stand at $4 billion. And 25,964 shares of Sea (known as Alibaba in Southeast Asia), 25,714 shares of Twilio (cloud communication), and 151,274 shares of Toast (new catering management platform), are the newly purchased stocks of ARKF on that day, which are worth noting.
The ARK Genomic Revolution ETF (ARKG) focuses on companies across multiple industries, but with a focus on healthcare and companies with game-changing potential for technologies in this space. The biggest holdings are Pacific Biosciences, Teladoc Health, CRISPR, and Fate Therapeutics. The fund's net assets currently stand at $9.7 billion. 450,594 shares of 1Life Healthcare (a member-only chain of medical clinics in the United States), 485,075 shares of Ginkgo Bioworks (one of the largest biotechnology companies in the world), and 250,000 shares of Surface Oncology (an immuno-oncology company), are the newly purchased stocks of ARKG on the day, worth Notice.
ARK Innovation ETF (ARK Innovation ETF, ARKK) focuses on disruptive innovations across multiple industries, especially technology. Some big companies are in the fund, including Tesla, Roku, Square, Zillow and Spotify. The fund's net assets currently stand at $25.5 billion. Recently bought stocks, 132,250 shares of Zoom Video, 251,411 shares of Trimble (the world's top GNSS positioning company), and 995,250 shares of Ginkgo Bioworks.
The ARK Autonomous Technology & Robotics ETF focuses on companies in the autonomous technology and robotics space, with an equal emphasis on capturing companies that are disruptive. Big names in the fund include Tesla, Alphabet, JD.com, Baidu and Iridium. The fund's net assets currently stand at $3.1 billion. Recently bought stocks, 15,689 shares of Blade Air Mobility (aviation innovation, helicopter commuter), 150,906 shares of Archer Aviation (air commuter), and 123,400 shares of Markforged (3D printing additive manufacturing company).
ARK Next Generation Internet ETF (ARK Next Generation Internet ETF, ARKW) focuses on companies that are making disruptive innovations in the next generation Internet track. Some of the big names include Tesla, Square, Grayscale Bitcoin Trust, Facebook and Snap. The fund's net assets currently stand at $6.4 billion. Recently purchased 33,372 shares of Zoom Video.
The Ark Space Exploration and Innovation ETF (NYSEARCA: ARKX ) focuses on companies developing technologies around spaceflight. Big names in the fund include Trimble, Kratos, Nvidia, Amazon and Iridium. The fund's net assets currently stand at $63.3 million. Recently purchased 35,426 shares of Velo3d.
This year, the performance of ARK Biogene Technology Innovation ETF, ARK Innovation ETF, ARK Fintech Innovation ETF and ARK Next Generation Internet ETF has significantly lagged behind the market. This week has been the sixth consecutive week of capital outflows from ARK Investment Company, totaling 1.8 billion US dollars. Investors obviously have no patience to wait for "Wooden Sister" to make a comeback. The ARK Genome Revolution ETF (-35%), ARK Innovation ETF (-20.8%), ARK Fintech Innovation ETF (-11.33%) and ARK Next Generation Internet ETF (-10.88%) not only significantly underperformed the broader market +20% overall The trend has been surpassed by most mediocre funds, which makes people question the effectiveness of the female stock god's active management.
ARK currently plans to launch the ARK Transparency ETF (CTRU) on December 8, 2021. CTRU will track the Transparency Index (TRANSPCY) and invest in the 100 most transparent companies in the world.
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