CGEN - Tracking Cathie Wood's ARK Invest 13F Portfolio - Q2 2022 Update

• ARK Invest’s 13F portfolio value decreased from $23.96B to $16.91B this quarter.
• Coinbase Global, Roku, Shopify, and Ginkgo Bioworks were increased while decreasing Spotify, Ionis Pharma, Vertex Pharma, and Sea Limited.
• The top three positions are Tesla, Zoom Video, and Roku, and they add up to ~18% of the portfolio.

This article is first in a series that provides an ongoing analysis of the changes made to ARK Invest's 13F portfolio on a quarterly basis. It is based on their regulatory 13F Form filed on 7/11/2022.

ARK Invest was founded by Cathie Wood in 2014. They manage several actively managed ETFs, index ETFs, and certain other international products. Assets Under Management (AuM) has come down from over $50B at the peak to ~$20B now. They invest in what they term "disruptive innovation" and the actively managed ETFs are ARK Innovation ETF ( ARKK ), ARK Autonomous Tech & Robotics ETF ( ARKQ ), ARK Next Generation Internet ETF ( ARKW ), ARK Genomic Revolution ETF ( ARKG ), ARK Fintech Innovation ETF ( ARKF ), and ARK Space Exploration & Innovation ETF ( ARKX ).

This quarter, ARK Invest's 13F portfolio value decreased ~30% from ~$23.96B to ~$16.91B. The number of holdings increased from 353 to 354. There are 41 securities that are significantly large and they are the focus of this article. The top three holdings are at ~18% while the top five are at ~27% of the 13F assets: Tesla, Zoom Video, Roku, Block Inc., and Exact Sciences.

Note 1: Unlike other investment management businesses, ARK is pioneering an open source model of investment research through a couple of initiatives: a) Valuations models on businesses are being made available to the public through GitHub , and b) daily trades are available to anyone who signs up for it. The open source model along with the outlandish forecasts has attracted criticism as well: in April, RIA lawyers urged SEC enforcement action.

Note 2: The 13F data on which this article is based is as of 6/30/2022. Updated daily holdings data for each of their ETFs are publicly available .

Note 3: Although as a percentage of the overall portfolio the positions are very small, it is significant that they have sizable ownership stakes in the following businesses: 908 Devices ( MASS ), Archer Aviation ( ACHR ), Accolade ( ACCD ), AquaBounty Tech. ( AQB ), Arcturus Therapeutics ( ARCT ), Blade Air Mobility ( BLDE ), Berkeley Lights ( BLI ), Cellectis SA ( CLLS ), Conformis ( CFMS ), Concord Acquisition ( CND ), Compugen ( CGEN ), Codexis ( CDXS ), Cerus Corp. ( CERS ), Evogene Limited ( EVGN ), Editas Medicine ( EDIT ), Markforged ( MKFG ), Nextdoor ( KIND ), Nano Dimension ( NNDM ), Personalis ( PSNL ), Quantum-Si ( QSI ), Repare Therapeutics ( RPTX ), Surface Oncology ( SURF ), and Vuzix Corp. ( VUZI ).

Stake Disposals:

DocuSign, Inc. ( DOCU ), Iridium Communications ( IRDM ), Palantir Technologies ( PLTR ), and Twitter, Inc. ( TWTR ) : These stakes were sold down last quarter and disposed this quarter. The DOCU stake was built during the three quarters through Q1 2021 at prices between ~$190 and ~$265. The next two quarters saw a ~45% selling at prices between ~$187 and ~$310. There was a ~40% stake increase in Q4 2021 at prices between ~$135 and ~$284 while in Q1 2022 the stake was almost eliminated at prices between ~$73 and ~$161. The stock is now at $60.23. The IRDM position was built during the six quarters through Q2 2021 at prices between ~$19.50 and ~$54. The next three quarters saw the position almost sold out at prices between ~$32 and $47. The stock currently trades at $38.65. The PLTR stake was built during the first three quarters of last year at prices between ~$20 and ~$35. The position was almost eliminated last quarter at prices between ~$10 and ~$19. PLTR currently trades at $8.90. TWTR was a small stake in their first 13F filing in 2016. 2017-18 timeframe saw the position built at prices between ~$14 and ~$47. H1 2020 saw the stake sold down at prices between ~$23 and ~$38 and the remainder were sold in Q4 2020. Next two quarters saw the stake rebuilt at prices between ~$45 and ~$77. Q1 2022 saw the stake sold down again at prices between ~$33 and ~$43 and the remainder stake were sold this quarter. The stock is now at $36.29.

Stake Increases:

Zoom Video ( ZM ) : The large (top three) ~6% of the portfolio ZM stake was built over the last seven quarters through consistent buying every quarter at prices between ~$98 and ~$559. The stock currently trades near the low end of that range at $97.35.

Roku, Inc. ( ROKU ) : ROKU is a top-three 5.69% of the portfolio position built in the 2019-20 timeframe at prices between ~$33 and ~$357. Last three quarters have seen another ~115% increase at prices between ~$73 and ~$345. The stock is now at $82.34.

Note: they have a ~8% ownership stake in Roku.

Block, Inc. ( SQ ) : SQ was a small stake in the portfolio in their first 13F filing in 2016. The position was built during the 2018-20 timeframe at prices between ~$40 and ~$99. Last two quarters saw a ~45% stake increase at prices between ~$58 and ~$164. The stock currently trades at $62.42, and the stake is now a top-five position at 4.73% of the portfolio.

Exact Sciences ( EXAS ) : The large (top five) 4.41% EXAS stake was built over the last two years through consistent buying every quarter at prices between ~$37 and ~$155. The stock currently trades near the low end of that range at $46.02.

Note: they have a ~8.5% ownership stake in Exact Sciences.

Coinbase Global ( COIN ) : COIN had an IPO in April 2021. Shares started trading at ~$290 and currently goes for $53.42. The ~4% position was built during Q2 & Q3 2021 at prices between ~$225 and ~$342. Next quarter saw a ~22% trimming at prices between ~$231 and ~$343 while the last two quarters saw a roughly two-thirds stake increase at prices between ~$49 and ~$252.

Teladoc Health ( TDOC ) : TDOC was a small stake until H2 2020 when a ~7.8M share position was purchased at prices between ~$183 and ~$238. Next quarter saw another ~85% stake increase at prices between ~$177 and ~$294. The quarters since have also seen minor buying. The stock currently trades well below their purchase price ranges at $39.18. The stake is fairly large at ~4% of the portfolio.

Note: they have a ~12.5% ownership stake in Teladoc Health.

UiPath Inc. ( PATH ) : PATH had an IPO in April 2021. Shares started trading at ~$72 and currently goes for $18.30. The 3.80% of the portfolio position was built in the Q2 to Q3 2021 timeframe at prices between ~$52 and ~$80. Last three quarters have seen a ~55% stake increase at prices between ~$17 and ~$56.

Note: they have a ~8.5% ownership stake in UiPath.

Twilio Inc. ( TWLO ) : The 3.47% of the portfolio TWLO stake was built during the four quarters through Q2 2021 at prices between ~$224 and ~$435. Next quarter saw a ~13% trimming while the last three quarters have seen a ~70% stake increase at prices between ~$79 and ~$369. The stock currently trades near the low end of their purchase price ranges at $81.18.

CRISPR Therapeutics ( CRSP ) : The bulk of the current 3.34% of the portfolio position in CRSP was built in 2020 at prices between ~$38 and ~$169. The stake has wavered. Q1 2021 saw a ~20% selling while in Q4 2021 there was a similar increase. The stock is now at $81.91.

Note: they have a ~12.5% ownership stake in CRISPR Therapeutics.

Shopify Inc. ( SHOP ) : The bulk of the current 2.69% position in SHOP was built during the three quarters through Q2 2021 at prices between ~$92 and ~$147. The stake has since wavered. H2 2021 saw a ~40% selling at prices between ~$135 and ~$169 while the last two quarters saw a ~70% increase at prices between ~$30 and ~$136. The stock is now at $30.67.

Intellia Therapeutics ( NTLA ) : NTLA was a minutely small position in ARK's first 13F filing in 2016. The 2017-2020 time period saw the position built to a ~11.2M share position at prices between ~$12.50 and ~$62. Since then, the stake has wavered. The first three quarters of 2021 saw a ~40% selling at prices between ~$52 and ~$177 while the last three quarters have seen a similar increase at prices between ~$39 and ~$138. The stock currently trades at $63.77, and the stake is at 2.60% of the portfolio.

Note: they have a ~13% ownership stake in Intellia Therapeutics.

Unity Software ( U ) : The 2.17% Unity stake was built during the four quarters through Q2 2021 at prices between ~$68 and ~$165. Q4 2021 saw a one-third reduction at prices between ~$126 and ~$197 while in the last two quarters there was a ~18% increase at prices between ~$30 and ~$139. The stock is now at $32.51.

DraftKings ( DKNG ) : DKNG came to market through a De-SPAC transaction in Q1 2021. The ~2% of the portfolio stake was built through consistent buying every quarter since at prices up to ~$70. The stock is now at $11.22.

Note: they have a ~6% ownership stake in DraftKings.

Robinhood Markets ( HOOD ) : HOOD had an IPO in August 2021. Shares started trading at ~$55 and currently goes for $8.24. The ~2% of the portfolio position was built through consistent buying over the last four quarters at prices between ~$7 and ~$55.

Beam Therapeutics ( BEAM ) : BEAM is a 1.83% of the portfolio position built over the last seven quarters at prices between ~$22 and ~$130. The stock is now at $56.12.

Note: they have a ~13% ownership stake in Beam Therapeutics.

Signify Health, Inc. ( SGFY ) : SGFY had an IPO in February 2021. Shares started trading at ~$39 and currently goes for $15.83. The bulk of ARK's stake was built in H2 2021 at prices between ~$14 and ~$30. Last two quarters have seen a minor increase. The position is at 1.76% of the portfolio.

Note: they have a ~13% ownership stake in Signify Health.

Fate Therapeutics ( FATE ) : FATE is a 1.57% of the portfolio stake built during the seven quarters through Q3 2021 at prices between ~$19 and ~$116. Last three quarters have seen only minor adjustments. The stock is now at $31.51.

Note: they have a ~12% ownership stake in Fate Therapeutics.

10x Genomics ( TXG ), 2U Inc. ( TWOU ), CareDx, Inc. ( CDNA ), Ginkgo Bioworks Holdings ( DNA ), Invitae ( NVTA ), Materialise NV ( MTLS ), NVIDIA Corp. ( NVDA ), Pacific Biosciences ( PACB ), PagerDuty ( PD ), Roblox Corp. ( RBLX ), Stratasys Ltd. ( SSYS ), TuSimple Holdings ( TSP ), Twist Bioscience ( TWST ), and Veracyte, Inc. ( VCYT ) : These small (less than ~1.60% of the portfolio each) stakes were increased during the quarter.

Note: they have significant ownership stakes in the following businesses: 2U Inc., CareDx, Ginkgo Bioworks, Invitae, Materialise NV, Pacific Biosciences, PagerDuty, Stratasys, TuSimple, Twist Biosciences, and Veracyte.

Stake Decreases:

Tesla Inc. ( TSLA ) : TSLA is the top position in the portfolio at 6.47%. It was already a small position in their first 13F filing in 2016. Recent activity follows. Q1 2021 saw a ~40% stake increase at prices between ~$598 and ~$880. Last five quarters have seen the position reduced by ~75% at prices between ~$580 and ~$1220. The stock currently trades at ~$715. They are harvesting gains.

Spotify Technology ( SPOT ) : SPOT had an IPO in April 2018. Shares started trading at ~$150 and currently goes for $96.32. ARK's stake is now a small 1.36% of the portfolio position. The bulk of the original position was built during the four quarters through Q2 2021 at prices between ~$224 and ~$365. Next two quarters saw a ~17% selling at prices between ~$210 and ~$290. That was followed with a ~50% reduction this quarter at prices between ~$92 and ~$159. The stake is now fairly small at 1.36% of the portfolio.

Sea Ltd. ( SE ) : The original position was built during the three quarters through Q1 2021 at prices between ~$200 and ~$280. The position has wavered. Q2-Q4 2021 saw the stake sold down by ~80% at prices between ~$215 and ~$360 while in Q1 2022 there was a ~200% stake increase at prices between ~$88 and ~$223. This quarter saw a two-thirds reduction to a very small 0.42% of the portfolio stake at prices between ~$57 and ~$133. The stock currently trades at $67.78.

AeroVironment ( AVAV ), Grayscale Bitcoin Trust (GBTC), Incyte Corp. ( INCY ), Ionis Pharma ( IONS ), Kratos Defense & Security ( KTOS ), Trimble Inc. ( TRMB ), and Vertex Pharma ( VRTX ): These very small (less than ~1% of the portfolio each) positions were reduced during the quarter.

Note: they have a ~6.5% ownership stake in KTOS.

The spreadsheet below highlights changes to ARK Invest's 13F holdings in Q2 2022:

For further details see: