ARK Investment Management LLC

What the Company Does

ARK Investment Management's primary function is to serve as an investment adviser to its various funds. The firm's approach is rooted in identifying and investing in companies that are poised to benefit from long-term, transformative technological advancements. ARK's investment process is characterized by a unique blend of top-down and bottom-up research.

Top-Down Research: This involves identifying broad, disruptive innovation platforms that are expected to experience significant growth. ARK's research team, which includes not only financial analysts but also scientists and engineers, seeks to understand the long-term implications of these technologies and their potential to reshape industries. They publish their research and "Big Ideas" annually, making their high-level theses accessible to the public.

Bottom-Up Research: Once a promising theme is identified, ARK's analysts conduct in-depth, fundamental analysis of individual companies within that theme. This includes evaluating a company's leadership, vision, technology, and potential for market leadership. The firm builds a five-year price target for each company it considers for its portfolios.

A key differentiator for ARK is its "open research ecosystem." The firm actively shares its research through its website, social media, and public forums, inviting feedback and insights from a diverse community of experts. This collaborative approach is intended to enhance the firm's understanding of complex and rapidly evolving technologies.

Products and Services

ARK Investment Management's products and services are designed to provide investors with access to its disruptive innovation-focused investment strategies. The firm's offerings are primarily centered around its actively managed and index ETFs, but it also offers other investment vehicles.

Actively Managed Exchange-Traded Funds (ETFs)

These are ARK's flagship products. Each ETF is focused on a specific area of disruptive innovation. The primary actively managed ETFs include:

• ARK Innovation ETF (ARKK): This is the firm's broadest and most well-known fund. It aims to capture long-term growth by investing in companies across various disruptive innovation themes, including genomics, automation, and next-generation internet.
• ARK Autonomous Technology & Robotics ETF (ARKQ): This fund focuses on companies that are expected to benefit from the development of new products and services related to autonomous technology and robotics. This includes areas like autonomous transportation, robotics and automation, 3D printing, energy storage, and space exploration.
• ARK Next Generation Internet ETF (ARKW): This ETF invests in companies that are focused on and expected to benefit from the shift of technology infrastructure to the cloud, the growth of e-commerce, and the increasing use of digital media. Key themes include cloud computing, cybersecurity, e-commerce, big data & artificial intelligence, and blockchain & P2P technology.
• ARK Genomic Revolution ETF (ARKG): This fund targets companies that are likely to benefit from the extension and enhancement of the quality of human and other life by incorporating technological and scientific developments, improvements, and advancements in genomics into their business. This includes areas like CRISPR, targeted therapeutics, bioinformatics, molecular diagnostics, and stem cells.
• ARK Fintech Innovation ETF (ARKF): This ETF focuses on companies that are at the forefront of the financial technology revolution. Investment themes include transaction innovations, blockchain technology, risk transformation, and frictionless funding platforms.
• ARK Space Exploration & Innovation ETF (ARKX): This fund is designed to invest in companies engaged in space exploration and innovation. This includes orbital aerospace, suborbital aerospace, enabling technologies, and aerospace beneficiaries.

Index ETFs

In addition to its actively managed funds, ARK offers index-based ETFs that track specific innovation themes. These include:

• The 3D Printing ETF (PRNT): This fund is designed to track the price movements of stocks of companies involved in the 3D printing industry.
• ARK Israel Innovative Technology ETF (IZRL): This ETF tracks a portfolio of Israeli companies whose main business is in innovative technologies.

Other Investment Vehicles

• ARK Venture Fund (ARKVX): This is a public-private crossover fund that invests in both private and public companies that are aligned with ARK's disruptive innovation themes. This fund offers accredited investors access to earlier-stage companies that are not yet publicly traded.
• Separately Managed Accounts (SMAs): ARK provides its investment strategies to institutional clients and high-net-worth individuals through separately managed accounts.
• UCITS ETFs: ARK has partnered with other financial institutions to offer its strategies in a UCITS (Undertakings for Collective Investment in Transferable Securities) structure for European investors.

Through its comprehensive suite of products and its forward-looking investment philosophy, ARK Investment Management LLC has established itself as a prominent and often-discussed player in the world of asset management, catering to investors who seek to capitalize on the transformative power of disruptive innovation.