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ARK Investment's Top 5 New Buys in the 1st Quarter

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- By James Li

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. (NYSE:TWTR), PACCAR Inc. (NASDAQ:PCAR), DraftKings Inc. (NASDAQ:DKNG), Bristol-Myers Squibb Co. (NYSE:BMY) and Skillz Inc. (NYSE:SKLZ).


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.

ARK Investment's Top 5 New Buys in the 1st Quarter
ARK Investment's Top 5 New Buys in the 1st Quarter

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.

Twitter

ARK Investment purchased 7,793,240 shares of Twitter (NYSE:TWTR), 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.

ARK Investment's Top 5 New Buys in the 1st Quarter
ARK Investment's Top 5 New Buys in the 1st Quarter

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.

ARK Investment's Top 5 New Buys in the 1st Quarter
ARK Investment's Top 5 New Buys in the 1st Quarter

Other gurus with holdings in Twitter include David Tepper (Trades, Portfolio)'s Appaloosa Management and Steven Cohen (Trades, Portfolio)'s Point72 Asset Management.

ARK Investment's Top 5 New Buys in the 1st Quarter
ARK Investment's Top 5 New Buys in the 1st Quarter

PACCAR

ARK Investment purchased 3,157,652 shares of PACCAR (NASDAQ:PCAR), 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.

ARK Investment's Top 5 New Buys in the 1st Quarter
ARK Investment's Top 5 New Buys in the 1st Quarter

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.

ARK Investment's Top 5 New Buys in the 1st Quarter
ARK Investment's Top 5 New Buys in the 1st Quarter

DraftKings

The firm purchased 4,375,424 shares of DraftKings (NASDAQ:DKNG), giving the holding 0.53% weight in the equity portfolio. Shares averaged $60.08 during the first quarter.

ARK Investment's Top 5 New Buys in the 1st Quarter
ARK Investment's Top 5 New Buys in the 1st 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.

ARK Investment's Top 5 New Buys in the 1st Quarter
ARK Investment's Top 5 New Buys in the 1st Quarter

Bristol-Myers Squibb

The firm purchased 2,179,919 shares of Bristol-Myers Squibb (NYSE:BMY), 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.

ARK Investment's Top 5 New Buys in the 1st Quarter
ARK Investment's Top 5 New Buys in the 1st Quarter

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.

ARK Investment's Top 5 New Buys in the 1st Quarter
ARK Investment's Top 5 New Buys in the 1st Quarter

Skillz

The firm purchased 6,012,260 shares of Skillz (NYSE:SKLZ), giving the position 0.23% weight in the equity portfolio. Shares averaged $28.87 during the first quarter.

ARK Investment's Top 5 New Buys in the 1st Quarter
ARK Investment's Top 5 New Buys in the 1st 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.

ARK Investment's Top 5 New Buys in the 1st Quarter
ARK Investment's Top 5 New Buys in the 1st Quarter

Disclosure: No positions.

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This article first appeared on GuruFocus.