Among them, identify 14 transformative technologies:
Many of these technological disruptions they are converting industries, generating opportunities and creating or recreating markets. The fund peaked in the middle of the pandemic in an environment of rates close to zero, which allowed significant bets on companies with a high level of leverage (growth stocks). Among its main holdings are actions such as: Tesla that designs, manufactures and sells electric carscomponents for the propulsion of electric vehicles, solar roofs, photovoltaic solar installations and home batteries, TelaDoc Health, which offers telemedicine and virtual health care assistance and Zoom, which we all met in a pandemic and needs no introduction.
All the shares that make up the fund were affected in recent times, facing a challenging environment in which the Federal Reserve began to reduce the injection of liquidity (tapering) and the consensus grew in relation to the rate hike. In this context, the background ARK performed much worse than the NASDAQ technology index and similar funds such as QQQ, VGT and IETC in the last year, something that indicates the level of aggressiveness of their particular approach.
ARK Innovation Fund – 2
Although nobody can doubt in relation to the great changes that the irruption of new technologies implies at a global level, the great unknown open in the market is whether these companies that seek to take advantage of them will be able to test their ability to maintain high growth rates and/or generate genuine income quickly to rebuild their valuations. The capacity of the fund and its research team in choosing those stories that will last beyond promises undoubtedly enters into this game. AND since they are no longer infallibleamong the more than 30 assets it has in its portfolio is, for example, Robin Hood (NYSE: HOOD), a platform that allows free trading in Wall Street stocks and cryptocurrencies, which since its peak last year it has fallen by more than 80%, a loss that seems difficult to reverse in the short term. On the other hand, Cathie Wood dabbled in some Chinese stocks last yearalthough it was withdrawn when it considered that the regulatory risk was too great and without a doubt he had excellent timing for this.
The ARKK CEDEAR allows access to a very attractive exchange rate (given the level of cash with liquidation in the local market) to this investment in dollars in a diversified portfolio of disruptive stocks that, as we have seen, are exposed to great volatility and risks. Many investors are finding in this fund a long-term investment opportunityalthough it is advisable to enter a proportion of the portfolio that is consistent with the risk appetite of each profile.
PPI Business Manager
Source: Ambito
