"Wooden Sister" Catherine Wood's Ark Asset Management recently filed a 13F position report.
In the early days of the epidemic, Wood Sister became famous with its extremely growing investment style, and its ARK investment company focused on disruptive companies that were changing the rules of the game in their respective industries. Once the "bet is successful", the company's stock price will "soar". But from another perspective, this strategy is highly risky and volatile.
After the epidemic faded, many companies in The Wood Sister's heavy position have experienced "Davis double killing", and the total value of the fund has been shrinking. In the previous article "From the fall of Sister Wood, look at Buffett's clichés", the value master Chinese Station analyzed the reasons for the sharp rise and fall of Sister Wood's fund.
ARK Fund Company's position value history, the source of the value of the master Chinese station
SP500, Berkshire stock price and ARKK fund one year trend, graph source value master Chinese station
The latest 13F position report submitted by the ARK Fund shows that among the popular technology stocks, ARK Investment Company significantly reduced its holdings in Twitter, Reduced Tesla, increased its holdings in Coinbase, Block and other companies in the first quarter of 2022, and built a position in Weilai for the first time.
ARK reduced its stake in Twitter by 92.27% to its remaining holdings of 1,333,583 shares, representing an average Twitter price of $36.53 during the reduction period. And just after the Wooden Sister reduced her holdings, Musk talked about buying Twitter, and Twitter's stock price rose by more than 40% in a few days. At present, the latest news from foreign media shows that Musk said that he has raised $46.5 billion for the acquisition of Twitter, in addition, Musk has also established three holding companies in Delaware with the name "X Holdings".
ARK Fund Twitter Historical Holdings, Source Value Master Chinese Station
Musk's filings with the U.S. Securities and Exchange Commission (SEC) show that Musk and his investment partners plan to inject money into one of the entities. If the acquisition of Twitter is successful, one of the subsidiaries will merge with Twitter.
Currently, Twitter's Value Guru financial strength rating is 6 points, indicating that the company's financial strength is strong. But the profitability rating is only 4 points, because despite the company's revenue per share growth rate of 17.4%, the company has been losing money for a long time and has only made a profit during the epidemic.
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The impact of the ARK Fund's reduction in Twitter in the previous quarter was 2.08% on its portfolio.
The ARK Fund also continues to reduce its holdings in Tesla, reducing its holdings by 332,600 shares in the first quarter of 2022, with an average price of $934.99 during the period. On Friday, the ARK fund just raised Tesla's 5-year price target, which is expected to reach $4600 in 2026. Last year, "Sister Wood" predicted that Tesla stock price would reach $3,000 by 2025.
Wood Sister said that the reduction of Tesla is to reduce the risk of "heavy positioning in a single stock".
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In addition to Twitter and Tesla, the ARK Fund sold a 98.26 percent stake in Palantir Technologies Inc. Palantir is a data mining, analytics and software company based in Denver, Colorado. It works primarily with governments to conduct in-depth searches of crime, finance, healthcare, communications, and immigration-related data. As of April 20, Palantir's stock was trading at approximately $12.95 and had a market capitalization of $26.21 billion.
ARK Fund Palantir has historical holdings. The source of the value master Chinese station
At the same time, Wood Sister has significantly increased its position in cryptocurrency exchange CoinbaseGlobal by 28.04%. Since its listing in April 2021, the stock has fallen 55%, even more than some cryptocurrencies themselves. The company's Value Guru financial strength rating is 6. The company has raised ample cash through listing and currently has a cash-to-debt ratio of 2.07%. The company's profitability rating is 5 points, mainly due to the high return on investment capital (ROIC), which has significantly exceeded the weighted average cost of capital (WACC) in the past two quarters.
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In addition, among the popular technology companies, Wood Sister added 2.1291 million shares, or 34.47%, to Block (former square); ROKU 2.2376 million shares, or 37.09%.
Finally, Wood Sister opened a position of 420,100 shares of Weilai for the first time, with an average price of $23.66 during the period. I don't know if Mu Tou sister hopes to replicate the miracle of Tesla through Weilai and China's potential new energy vehicle market. According to the data of the Ministry of Industry and Information Technology of the People's Republic of China "Economic Operation of the Automobile Industry in March 2022", in March 2022, due to the impact of the new crown pneumonia epidemic and the shortage of chip supply, the production and sales of mainland automobiles fell by 9.1% and 11.7% respectively year-on-year. Sales of new energy vehicles continued to maintain rapid growth, up 1.1 times year-on-year, and the market penetration rate reached 21.7%.
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But at present, Weilai's delivery volume has clearly lagged behind Xiaopeng and Ideal in the "new forces of car manufacturing". Even Nezha Automobile came behind, surpassing ideal cars in deliveries in March 2022 and ranking second among the new forces. At the same time, Weilai stock price is also in the tide of decline in Chinese stocks, slashing and slashing, at present, the value master Chinese station has given a "value trap suspect, think about it and touch it again" rating.
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The ultimate growth style makes the wooden sister seal the gods, and also lets her fall off the altar. Value Guru Chinese Station will continue to track its positions and bring company analysis, please look forward to it!