February mARKet Update Webinar Summary

In ARK Invest’s February Fund mARKet Update Webinar, CEO and CIO Cathie Wood and the ARK Investment Team provided insights on macroeconomic trends, ARK’s latest research, and developments across innovation platforms. The discussion covered interest rates, the role of private market access in the ARK Venture Fund, key investment themes in artificial intelligence (AI) and crypto, and emerging opportunities in energy and genomics. Below is a recap of the key questions and insights from the webinar. This article summarizes our perspectives on key questions asked prior to the webinar. For additional insights, we invite you to view the full February mARKet Update Webinar here.

Fixed income continues to be of interest to advisors given the current interest rates. What does ARK think about fixed income, and why should investors consider ARK’s strategies in this environment?

Cathie Wood discussed how ARK’s strategies differ from traditional fixed-income approaches, emphasizing the firm’s focus on innovation as an alternative to bonds in a portfolio. While high interest rates have attracted investors to fixed-income products, ARK believes that the long-term deflationary impact of technological innovation will bring rates lower over time. As a result, ARK sees significant opportunity in equities exposed to AI, automation, and energy storage, which could benefit from lower borrowing costs in the future. Innovation-driven equities remain an effective hedge against economic uncertainty.

ERShares Private-Public Crossover ETF (XOVR) has recently joined Destiny Tech 100 (DXYZ) as an exchange-listed fund offering exposure to SpaceX. How does the ARK Venture Fund (ARKVX) and its exposure to SpaceX differ from these other products?

Cathie explained that while XOVR and DXYZ offer exposure to SpaceX, they differ significantly from ARK’s approach in the ARK Venture Fund. She emphasized that ARKVX provides access to private market investments at fair market value, avoiding the extreme premiums seen in DXYZ, which at one point traded at over a 2,000% premium to net asset value. Unlike exchange-traded funds, which are capped at 15% illiquid exposure, ARKVX’s interval fund structure allows for roughly an 85% venture allocation, enabling deeper exposure to disruptive private companies like SpaceX.

Is ARK worried about key man risk with Elon Musk given his recent closeness with the new administration?

Cathie acknowledged that Musk is a visionary leader whose influence spans Tesla, SpaceX, and artificial intelligence. While his role is pivotal, ARK evaluates companies not just based on leadership but also on deep moats and technological advantages. Tesla, for example, has built a robust AI and robotics foundation that ARK believes will continue to drive growth even beyond Musk’s leadership. She also pointed out that Tesla’s Dojo supercomputer and Full Self-Driving advancements could transform the company’s valuation model over time, reinforcing its position as an AI leader.

What are ARK’s most recent thoughts on CRISPR Therapeutics, and what are some dynamics at play affecting its current price?

Cathie and Chief Futurist Brett Winton discussed CRISPR Therapeutics and its long-term potential in gene editing. While the stock has experienced volatility, ARK remains confident in CRISPR’s leadership in ex-vivo gene editing. With its first CRISPR-based therapy now commercially available, the company has de-risked its platform, yet investor sentiment remains focused on short-term revenue visibility. ARK believes the market is underestimating CRISPR’s ability to scale gene-editing applications beyond rare diseases.

Can you highlight your investment thesis for Tempus AI?

Research Analyst Nemo Marjanovic provided an overview of Tempus AI, a company leveraging AI-driven precision medicine to improve patient outcomes. Tempus has built one of the most comprehensive real-world clinical and molecular datasets, enabling faster and more accurate diagnostics. ARK views Tempus as a leader in AI-powered healthcare, with applications spanning oncology, cardiology, and neurodegenerative diseases. As AI adoption in healthcare accelerates, Tempus AI is well-positioned to capitalize on personalized medicine and predictive analytics.

What role do nuclear and hydrogen play in ARK’s long-term energy investment thesis?

Research Analyst Daniel Maguire explained that ARK sees nuclear energy as a key solution for clean, firm power, especially as AI and data centers drive massive energy demand. While traditional nuclear has been slow to scale, advancements in small modular reactors could revolutionize deployment. Hydrogen, on the other hand, remains an emerging opportunity with potential in industrial applications, but ARK believes green hydrogen adoption depends on continued cost declines in electrolysis technology.

How does ARK assess geopolitical risks when investing in disruptive innovation globally?

Cathie addressed geopolitical risks by emphasizing ARK’s focus on innovation-first investment selection. While regulation and policy can impact short-term dynamics, technological progress remains the long-term driver of value creation. She cited as examples China’s growing investment in AI and electric vehicles, as well as the US government’s increasing focus on semiconductor independence. ARK monitors global risks but prioritizes companies that drive secular technological shifts regardless of policy cycles.

How long before AI and crypto become the power couple of tech?

Director of Digital Assets Lorenzo Valente highlighted that AI and crypto are already converging, particularly in decentralized AI infrastructure. He noted that AI models require significant compute resources, and blockchain-based decentralized networks could provide scalable solutions. Lorenzo cited projects leveraging crypto-based incentives to power AI model training, as well as Bitcoin’s increasing integration with AI-driven security models. ARK expects this convergence to accelerate, reshaping financial and technological infrastructure.

Conclusion

The February Fund mARKet Update Webinar reinforced ARK’s commitment to investing in disruptive innovation across public and private markets. With advancements in AI, genomics, blockchain, and clean energy, ARK continues to identify opportunities in high-growth, transformational sectors. As innovation accelerates, ARK remains focused on long-term value creation through its research-driven investment approach.

Stay tuned to our In The Know video series for deeper insights about deflation, innovation, and macroeconomic developments.

Important Information

The information provided in this material is for informational purposes only and should not be used as the basis for any investment decision and is subject to change without notice. It does not constitute, either explicitly or implicitly, any provision of services or products by ARK, and investors should determine for themselves whether a particular investment management service is suitable for their investment needs. All statements made regarding companies or securities are strictly beliefs and points of view held by ARK and are not endorsements by ARK of any company or security or recommendations by ARK to buy, sell or hold any security. Historical results are not indications of future results. 

Certain of the statements contained in this material may be statements of future expectations and other forward-looking statements that are based on ARK's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. ARK assumes no obligation to update any forward-looking information. ARK and its clients as well as its related persons may (but do not necessarily) have financial interests in securities or issuers that are discussed. Certain information was obtained from sources that ARK believes to be reliable; however, ARK does not guarantee the accuracy or completeness of any information obtained from any third party.

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Bitcoin is subject to rapid price swings, including as a result of actions and statements by influencers and the media, changes in the supply of and demand for bitcoin, and other factors. There is no assurance that bitcoin will maintain its value over the long term.

ARK strongly encourages any investor considering an investment in bitcoin or any other digital asset to consult with a financial professional before investing. All statements made regarding bitcoin are strictly beliefs and points of view held by ARK and are not recommendations by ARK to buy, sell or hold bitcoin. Historical results are not indications of future results.

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