ARK Investment Management has become one of the top global asset managers in the investing world. Its chief executive and chief investment officer, Cathie Wood, is counted among the hottest money managers today.
ARK's suite of actively managed exchange-traded funds grew its fortunes more than fivefold from March 2020 till the end of last year, indelibly linked with its single biggest holding, Tesla (TSLA) .
ARK grew from $11.4 billion at the end of March 2020 to $58.2 billion in December 2020, according to The Wall Street Journal.
Wood told the Financial Times that Tesla retains significant competitive advantages in the development of electric vehicles, a market segment for which ARK estimates compound annual growth of 80% in the next five years.
Her confidence in Tesla also has grown based on what ride-sharing potentially could add to the electric-vehicle maker's portfolio as it considers launching a human-driven ride-hailing network.
"There is a more than 30% chance in our view that Tesla is the autonomous taxi network of the US," Wood told the FT.
Wood, who founded ARK in October 2014 after 12 years as an investment officer at AllianceBernstein, said innovative companies will converge in the future.
Traders on online forums like Reddit's WallStreetBets refer to Wood as Cathie Bae [as in babe or before anyone else] and swear by her choices.
ARK runs five ETFs with Wood and her team of 11 analysts and portfolio managers actively investing in companies, they believe, will change the world.
ARK Invest’s flagship fund - ARK Innovation (ARKK) - has raked in $5.3 billion in inflows this year alone, according to FactSet. Since its launch, ARK Innovation, also the firm’s largest fund, has delivered an average return of 39% annually, the Journal reported. Here are the top 10 holdings in the ARK Innovation ETF by the weight percentage in the ETF.
Top 10 ARK Innovation ETF holdings by weight %:
1. Tesla TSLA | 8.53%
Shares of Tesla (TSLA) have risen 9.37% to $798.15 this year. Last year the EV maker's stock spiked more than 730%. The company is counted among the ten most valuable companies in the world.
Last week, Tesla made headlines when it disclosed in a Securities and Exchange Commission filing that it had purchased $1.5 billion of digital asset bitcoin.
2. Roku ROKU | 6.87%
Connected-television company Roku's (ROKU) stock is up about 37% year to date, and 259% in the past 12 months. Despite hits to the advertising business due to COVID-19, the company’s shares have soared. Roku has been a big stay-at-home winner, adding 14 million active accounts in 2020.
3. Square SQ | 5.17%
Analysts at Deutsche Bank boosted their price target on Square (SQ) Wednesday to $330 from $255, while keeping a Buy rating on the stock. The bank said the payments company may have been a “recovery play in 2020” but is poised to be a “bigger recovery story in 2021.” Square stock is already up 22% this year, after climbing more than 200% in 2020. It recently changed hands at $265 a share.
4. Teladoc Health TDOC | 5.15%
Teladoc Health is counted among disruptive investments, TheStreet founder Jim Cramer said in a segment on Mad Money. Last month, Teladoc climbed after J.P. Morgan analyst Lisa Gill said the virtual health-care services company remains her top pick for 2021 in the health-care technology and distribution sector.
5. Zillow Z | 3.69%
Zillow stock soared 650% last year. Shares of the Seattle-based online real estate marketplace are already up 50% this year. The company posted stellar fourth-quarter results last week, with a 63% sequential revenue growth of its automated home flipping business.
6. Baidu BIDU | 3.48%
Shares of Chinese tech giant Baidu (BIDU) rose after-hours on Wednesday after beating analyst earnings estimates and falling just shy of consensus revenue estimates for the fourth quarter. Year-to-date shares up almost 47%.
7. Crispr Therapeutics CRSP | 3.34%
Crispr Therapeutics (CRSP) reported a fourth-quarter loss of $1.50 a share compared to a profit of 50 cents in the year-ago period. Shares of Crisps Therapeutics have risen 1.5% so far this year.
8. Spotify SPOT | 3.26%
On Feb. 3, streaming giant Spotify (SPOT) posted a wider-than-expected fourth-quarter loss and conservative guidance despite a 24% rise in subscriber numbers.
9. Invitae NVTA | 3.04%
Invitae (NVTA) on Wednesday reported a wider-than-expected loss of $241 million in its fourth quarter and missed analyst expectations. The San Francisco-based company reported a loss of $1.34 a share. Losses, adjusted for costs related to mergers and acquisitions and amortization costs, came to 63 cents a share.
Invitae shares have increased 14% since the beginning of the year.
10. Shopify SHOP | 2.6%
Shopify (SHOP) , the e-commerce software provider, reported better-than-expected fourth-quarter earnings. The coronavirus pandemic has driven demand for its services. Bulls are stepping in and buying the post-earnings dip in Shopify.