November mARKet Update Webinar Summary

In our November Fund mARKet Update Webinar, ARK Invest’s CEO and CIO Cathie Wood joined ARK’s Investment Team to offer important perspectives on the current macroeconomic environment, the outlook for innovation, and emerging opportunities across a range of sectors. As always, ARK remains committed to identifying and investing in disruptive technologies that are reshaping industries globally. Below, we provide a summary of the key discussions from the webinar, including the evolving macroeconomic landscape, the implications of a new US administration, and opportunities across technology, healthcare, and digital assets. This article summarizes our perspectives on key questions asked prior to the webinar. For additional insights, we invite you to view the full mARKet Update Webinar here.

How can investors feel confident that this isn’t just a market trend but rather the start of a sustained rally? Second, how may the portfolio change in a new environment?

Cathie Wood opened by addressing investor concerns about whether the recent market activity reflects a sustained rally or a temporary trend. She emphasized that the new administration’s policies—particularly tax cuts and regulatory clarity—could catalyze long-term economic growth. Cathie highlighted the importance of retroactive tax cuts to encourage immediate business activity, drawing lessons from the Reagan era. As liquidity events such as initial public offerings (IPOs) and mergers and acquisitions (M&A) re-emerge, ARK expects to transition from portfolio concentration in bear markets to diversification strategies in bull markets, seeking to capitilize on an anticipated expansion in innovation-driven industries.

Why did you buy Illumina recently?

Cathie and Analyst Nemo Marjanovic, PhD outlined ARK’s decision to reinvest in Illumina, a cornerstone of ARK’s multiomics strategy. Despite our previous concerns about the company under its prior management, the company’s new leadership has returned its focus to research and development (R&D) and innovation. Illumina’s advancements in short-read sequencing—critical for areas like liquid biopsy—and partnerships to expand capabilities in single-cell genomics were pivotal in ARK’s renewed confidence. Illumina’s move to integrate cutting-edge workflows, such as their DRAGEN analysis platform,¹ underscores the company’s potential to drive the genomics revolution forward.

Where does ARK see the next opportunity in artificial intelligence (AI)?

Frank Downing, Director of Research for Next Generation Internet, and Cathie highlighted key opportunities in AI, spanning hardware, platforms, and applications. Frank noted how companies like NVIDIA and AMD are scaling AI accelerator revenues, while cloud providers such as Amazon Web Services (AWS) capitalize on AI-driven growth. ARK also sees significant potential in customizable AI platforms, with companies like Palantir leading the charge, especially in enterprise adoption. Cathie added that we believe the robotaxi market, led by Tesla, represents the most significant revenue opportunity over the next decade, alongside breakthroughs in healthcare through AI-driven gene editing and diagnostics.

In what ways do you think the new incoming White House administration will be helpful to fintech and healthcare?

Cathie discussed how deregulation under the new administration could positively impact fintech and healthcare. In fintech, regulatory clarity—particularly around digital assets—is likely to accelerate innovation, with bitcoin and decentralized finance playing pivotal roles. In healthcare, Cathie highlighted the potential for policies supporting predictive, preventative, participatory, and personalized medicine to transform the industry. She emphasized a shift from chronic disease management to curative therapies enabled by advancements in gene editing and AI.

When do you see cryptocurrency being used for commerce and payments?

Director of Digital Assets Yassine Elmandjra addressed the increasing momentum of cryptocurrencies as a payment mechanism. He pointed to regulatory clarity and technological advancements, such as Coinbase Commerce and Stripe’s stablecoin integrations, as enablers of broader adoption. Yassine highlighted stablecoins as a critical bridge, noting that their transaction volume has surpassed that of Mastercard and American Express. He emphasized the importance of consumer education and infrastructure development in driving crypto adoption for cross-border payments, lower fees, and faster settlement times.

Given that Crispr Therapeutics and Intellia have approved late-stage therapies, why do you think these are so undervalued and misunderstood by the market?

ARK’s Chief Futurist Brett Winton explained the market’s misunderstanding of gene-editing therapies, such as Crispr Therapeutics’ Casgevy for sickle cell disease. Wall Street’s preference for annuity-like business models has caused many to undervalue the one-time revenue potential of curative treatments. Brett argued that cures pull forward significant revenue while reducing long-term healthcare costs, making them attractive from both a humanitarian and financial perspective. As these therapies generate real-world data, ARK expects a re-rating of gene-editing companies as investors adjust their valuation models.

Will ARK continue to be a major investor in SpaceX and Starlink when they finally go public?

In the webinar’s final question, Sam Korus, Director of Research for Autonomous Technology and Robotics, reaffirmed ARK’s conviction in SpaceX, the ARK Venture Fund’s largest holding. He highlighted SpaceX’s reusability moat and its dominant position in lowering the cost of space access. Sam noted that while a Starlink initial public offering (IPO) is unlikely in the near term, it could become a possibility as SpaceX ramps up production of Starship rockets to support its ambitious goal to build a city on Mars. ARK remains committed to supporting SpaceX as a leader in space innovation.

Conclusion

The November Fund mARKet Update Webinar provided insights into the evolving macroeconomic landscape and the opportunities for innovation across a variety of sectors. As regulatory clarity improves and capital markets reopen, ARK believes it is well-positioned to capitalize on emerging opportunities in AI, healthcare, fintech, and beyond.

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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