Top Stock Picker of 2020 Wins with Disruptive DNA

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Everyone should know Cathie Wood by now.
Indeed, whatever benefits central bankers have bequeathed to shareholders with near zero interest rates and the record US $ 14 trillion increase in global money supply in 2020, Wood has beaten all selectors. of titles betting on innovators in DNA development saving the world from the global pandemic.

Among the 367 US-based mutual funds with 60% of their US $ 5 billion (or more) in US stocks, its ARK Genomic Revolution ETF, ARK Innovation ETF and ARK Next Generation Internet ETF are far ahead, collecting 203% bonanzas. , 159 percent and 157 percent, respectively.

Wood left his closest competitor behind by 60 percentage points. It also delivered a total return (income plus appreciation) which is 11 times the gain of the S&P 500; 19 times the average of exchange traded funds; According to data compiled by Bloomberg, 17 times the progression of the benchmark healthcare index and 5 times the similar metric for technology.

Wood has achieved these feats with investments she considers so transformational that they have created enough wealth to change the course of the economy before and after the coronavirus killed more than 1.7 million people this year.

His five favorites in ARK Genomic Revolution enjoyed a total of 431 percent. They include Arcturus Therapeutics Holdings, the San Diego-based biotechnology focused on treatments for diseases including the coronavirus, accounting for 4.7% of the fund and bringing in 750% in 2020; Teladoc Health Inc., the New York-based health services company Purchase, 4.6 percent of the fund and a 136 percent increase; Crispr Therapeutics AG, the Basel, Switzerland-based biotechnology maker of genetic drugs, 6.2% of the fund and a return of 177%; Pacific Biosciences of California Inc., the Menlo Park life sciences and diagnostics maker for cheap DNA sequencing, accounting for 7% of the fund and bringing in 432%; and Twist Bioscience Corp. of San Francisco, specializing in synthetic DNA, including genome engineering, which gained 661% and represents 5.9% of the fund, according to data compiled by Bloomberg.

Wood, 65, a summa cum laude graduate in finance and economics from the University of Southern California, has made breakthrough innovation her calling card since Ark Investment Management LLC became a Chartered Advisor in January 2014 at a when money management was increasingly a passive, index-based business. Its focus on genome sequencing, robotics, artificial intelligence, energy storage and blockchain technology proved prescient: ARK Genomic Revolution attracted record monthly entries in December, bringing the total of new fund of the fund for 2020 at US $ 4.7 billion, according to data compiled by Bloomberg.

Unlike most of its competitors, which rely on market benchmarks to determine the size of their holdings, Wood helped ARK Genomic Revolution grow 225% to US $ 5.2 billion in the year. during the last quarter, by purchasing an additional 1.5 million shares of Arcturus Therapeutics. , maintaining its weighting at 4.7 percent. It added 7 million shares of Pacific Biosciences of California, increasing its weighting to 7.1% from 5.6%, and increased Twist Bioscience by 1.4 million shares, increasing its weighting to 4.7 % to 5.9%. It reduced its stake in Invitae Corp. to 3.6% of the fund from 12% and Crispr Therapeutics to 6.2% from 8%, according to data compiled by Bloomberg.

All of this has proven its prowess for dynamic and transparent investing as its ARK Innovation ETF, the second best return among 367 funds this year with a total return of 159%, dethroned JPMorgan in December as the biggest Actively managed ETF. Among ARK Innovation’s top three holdings, Palo Alto-based Tesla Inc. has appreciated 696% this year and contributed 39 percentage points to the fund’s performance; Roku Inc., the San Jose-based internet media company, gained 154 percent, or 11 percentage points, and Crispr, 9 percentage points.

Wood is best known for defending Tesla shortly after Ark launched seven years ago, when more than 60% of analysts polled by Bloomberg were bearish on the zero-emission battery electric vehicle maker. She made Tesla No. 1, or 10% of the fund, in 2018. She still considers it undervalued as traditional automakers lose money on their electric vehicles, while Tesla becomes more profitable. due to its battery and chip technology.

Asked earlier this month what one of the best years in money management history looks like, Wood told Bloomberg’s Erik Schatzker on the Front Row program:

“The coronavirus has created a tremendous number of problems, and our portfolios are all focused on problem solving, and our investors have been recognized for helping solve some of the world’s deepest problems. I love bringing new ways of seeing the world to life, helping people understand how the world will change not only in their investment portfolios but also in their own lives, the lives of their children, the lives of their grandchildren. kids – helping them understand how to move everyone is on the right side of the change and truly benefiting from the exponential growth trajectories that are just starting to take off. ”

This column does not necessarily reflect the opinion of the Editorial Board or of Bloomberg LP and its owners.

Matthew A. Winkler is co-founder of Bloomberg News (1990) and editor-in-chief emeritus; Bloomberg opinion columnist since 2015; Co-founder of the Bloomberg Business Journalism Diversity Program in 2017. During his 25 years as editor, Bloomberg News has been a three-time finalist and Pulitzer Prize winner for explanatory reporting and has received numerous George Polk, Gerald Loeb, Overseas Press Club and Society of Professional Journalists and Editors (Sabew) Award.



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