By: Manisha Sethi Aug. 21, 2018

ARK Investment Management LLC reported SEC 13F filings on May 14, 2018, for the first quarter of the calendar year, and the value of its portfolio is $2013.80 million. The 5 largest holdings of the investor are Stratasys Ltd. (SSYS), Tesla Motors Inc. (TSLA), Amazon.com Inc. (AMZN), Twitter Inc. (TWTR), and Intellia Therapeutics Inc. (NTLA). ARK Investment Management LLC is based in New York and was founded by Catherine D Wood in January 2014. The firm invests in various sectors, with technology stocks making up the largest chunk (51.86%). The company offers portfolio management, financial planning, and advisory services to its clients in the United States.

Raltin analyzed the new purchases by ARK Investment Management LLC from 2014 Q1 to 2018 Q1 and calculated their annual internal rate of return. Of the investor’s 102 new purchases, 66 stocks have outperformed the S&P 500 while 25 have underperformed the S&P 500 by more than 20%. A detailed background on Raltin’s methodology is given here. The table below shows the number of new purchases according to their S&P 500 performance.

S&P outperformance categoryNumber of new stock purchasesTotal new purchases (%)
>20%4847.06
10 to 20%1110.78
0 to 10%76.86
-10 to 0%32.94
-20 to -10%87.84
<-20%2524.51
Total stocks102

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In this quarter, the firm bought 13 new stocks across sectors. Taiwan Semiconductor Manufacturing Co., MGT Capital Investments, France MGI Digital Graphic Technology, and Infineon Technologies AG constitute the largest holdings in the new purchases. The other stocks are from the following sectors: consumer discretionary, healthcare, finance, and industry. The following table lists the investor’s new purchases for Q1 2018.

StocksNumber of sharesHolding value ($1,000)
Taiwan Semiconductor Manufacturing Co. Ltd. (TSM)2,17,2099505
MGT Capital Investments Inc. (MGT)24,01,3433086
France MGI Digital Graphic Technology (FRIIF)336622441
Infineon Technologies AG (IFX)721351947
Rakuten Inc. ADR (RKUNY)1,89,9921560
Daimler AG (DMLRY)708101503
Iovance Biotherapeutics Inc. (IOVA)650961100
Stryker Corp. (SYK)3879624
Moog Inc. (MOG.A)6934571
AquaBounty Technologies Inc. (AQB)94239278
Intercontinental Exchange Inc. (ICE)1719125
Fanuc Corporation (FANUF)22055
Volkswagen AG (VLKAY)2299

The following table shows the portfolio value of the fund for the last 2 quarters starting from Q1 2017, along with the top holdings in each quarter that outperformed the S&P 500.

PeriodTotal portfolio value ($Mn)Top holdings (ticker, % of IRR difference from S&P 500)
Q1 2017346.91Editas Medicine, Inc. (EDIT, 37.02), Cellectis S.A. (CLLS, 19.73), Apple, Inc. (AAPL, 5.18)
Q4 2016274.89Foundation Medicine, Inc. (FMI, 267.3), Alnylam Pharmaceuticals, Inc. (ALNY, 221.04), LendingTree, Inc. (TREE, 217.59)