By Zoe, Melody
ARK Investment has recently become a huge player in the ETF industry due to its wildly optimistic price target for Tesla. Its founder Catherine Wood is even called 'female Buffett'.
However, her investment preference is different from Buffett's. Wood advocates investment in transformational technologies, which she describes as "disruptive innovation", unlike Buffet, who rarely touches tech industries.
ARK currently has 5 actively managed innovation ETFs:
$Ark Autonomous Technology & Robotics Etf(ARKQ.US)$
$Ark Next Generation Internet ETF(ARKW.US)$
$ARK Genomic Revolution ETF(ARKG.US)$
$Ark Fintech Innovation Etf(ARKF.US)$
The performance of these funds is amazing. ARKK, the most well-known product, has an average annualized return of nearly 40% over the past five years. Moreover, all five funds have risen more than 80% in the past year. All of them have outperformed the S&P 500 ETF (SPY) and the NASDAQ 100 Index ETF (QQQ).
The top three stocks on the list of lastest trades were:
$Splunk Inc(SPLK.US)$ is an American public multinational corporation based in San Francisco, California. It develops software for searching, monitoring, and analyzing machine-generated big data. It can capture, index, and correlate real-time data in a searchable repository from which it can generate graphs, reports, alerts, dashboards, and finally display them as visualized web pages.
Recently, the law firm Pomerantz LLP has investigated claims on behalf of investors of Splunk. The investigation concerns whether Splunk and certain of its officers and/or directors have engaged in securities fraud or other illegal business practices. The lawsuit is regarding the sharp drop in SPLK's stock price after the last earnings release.
$Taiwan Semiconductor Manufacturing Co Ltd(TSM.US)$ TSM, the world's largest contract chip manufacturer, confirmed that it was on track to start "risk production" of 3nm Apple chips in 2021, and will start the full-scale production in the later 2022. "Risk production" means that the prototype has been completed and tested, but not yet reached the stage of mass production of the final product. This can help to reveal problems associated with mass production, and when these problems are resolved, full production can begin.
$Thermo Fisher Scientific Inc(TMO.US)$ is an American provisioner of scientific instrumentation to healthcare and life science, with annual revenues of more than $20 billion. They are committed to helping customers make the world a healthier, cleaner, safer place. The company has about 65,000 employees worldwide. Key customers include pharmaceutical and biological companies, hospitals and clinical diagnostic laboratories, universities, research institutes, and government agencies, as well as manufacturers of environmental and industrial process control equipment.
On January 19th, TMO announced that it plans to buy Mesa Biotech for $450 million. Mesa developed and commercialized a PCR-based rapid point-of-care testing platform available for detecting infectious diseases including the coronavirus. The deal is expected to close this quarter.
Please do not blindly follow ARK's trades. This is to provide you with a list of quality companies worth looking at. It is always smart to do your own due diligence before investing!