ARK Investment, the asset management firm founded by Catherine Wood (Trades, Portfolio), disclosed this week that its top five new positions during the first quarter were in Twitter Inc. (TWTR, Financial), PACCAR Inc. (PCAR, Financial), DraftKings Inc. (DKNG, Financial), Bristol-Myers Squibb Co. (BMY, Financial) and Skillz Inc. (SKLZ, Financial).
According to its website, the New York-based firm seeks to deliver long-term growth by investing in the stock of public companies that have the potential to benefit from disruptive innovation categories, such as artificial intelligence, robotics, energy storage, DNA sequencing and blockchain technology.
As of March 31, ARK Investment's $50.18 billion equity portfolio contains 283 stocks with 50 new positions and a turnover ratio of 36%. The top four sectors in terms of weight are health care, communication services, technology and consumer cyclical, representing 35.23%, 21.23%, 20.93% and 11.01% of the equity portfolio.
ARK Investment purchased 7,793,240 shares of Twitter (TWTR, Financial), giving the position 0.99% weight in the equity portfolio. Shares averaged $61.29 during the first quarter; the stock is modestly overvalued based on Friday's price-to-GF Value ratio of 1.14.
GuruFocus ranks the San Francisco-based social media giant's financial strength 5 out of 10: Although the company has a strong Altman Z-score of 4.21, Twitter has a low Piotroski F-score of 2 and debt ratios underperforming more than 88% of global competitors.
Other gurus with holdings in Twitter include David Tepper (Trades, Portfolio)'s Appaloosa Management and Steven Cohen (Trades, Portfolio)'s Point72 Asset Management.
PACCAR
ARK Investment purchased 3,157,652 shares of PACCAR (PCAR, Financial), giving the position 0.58% weight in the equity portfolio. Shares averaged $93.81 during the first quarter; the stock is significantly overvalued based on Friday's price-to-GF Value ratio of 1.54.
GuruFocus ranks the Bellevue, Washington-based heavy-duty truck manufacturer's profitability 7 out of 10 on the back of profit margins and returns outperforming over 70% of global competitors.
DraftKings
The firm purchased 4,375,424 shares of DraftKings (DKNG, Financial), giving the holding 0.53% weight in the equity portfolio. Shares averaged $60.08 during the first quarter.
GuruFocus ranks the the Boston-based sports betting company's financial strength 7 out of 10 on the back of a high Altman Z-score of 3.59 and a cash-to-debt ratio that outperforms over 71% of global competitors.
Bristol-Myers Squibb
The firm purchased 2,179,919 shares of Bristol-Myers Squibb (BMY, Financial), giving the stake 0.27% weight in the equity portfolio. Shares averaged $62.18 during the first quarter; the stock is fairly valued based on Friday's price-to-GF Value ratio of 0.93.
GuruFocus ranks the New York-based drug manufacturer's financial strength 4 out of 10 on several warning signs, which include a low Altman Z-score of 1.85 and interest coverage and debt ratios that underperform more than 85% of global competitors.
Skillz
The firm purchased 6,012,260 shares of Skillz (SKLZ, Financial), giving the position 0.23% weight in the equity portfolio. Shares averaged $28.87 during the first quarter.
GuruFocus ranks the San Francisco-based social gaming company's financial strength 8 out of 10 on the back of a double-digit Altman Z-score and no long-term debt.
Disclosure: No positions.
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