Because of the stock-picking acumen of Wood and her team, ARK funds are taking in billions of dollars of new capital. That cash must be deployed into existing or new positions, and some market observers are growing concerned that some ARK funds own too much of some smaller companies’ equity.<\/p>\n
As of Feb. 22, 2021, the ARK Innovation ETF (NYSEARCA:ARKK) owned at least five percent of a company’s public shares in more than one third its holdings, and at least 10 percent of free float in 10 out of the 55 companies in its portfolio,\u201d<\/strong> according to Morningstar.<\/p><\/blockquote>\nFor now, that’s not a risk for the fund manager as it pertains to DraftKings and Skillz, as it’s not a top 20 holder of either name.<\/p>\n
To control 10 percent of the Skillz float, ARK would need to own roughly 40 million shares — the same level needed to get to a comparable ownership level in DraftKings. Just five institutional investors own three percent or more of the sportsbook betting firm’s shares outstanding, and none exceed six percent.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"Cathie Wood\u2019s ARK Investment Management continues adding to positions in DraftKings (NASDAQ:DKNG) and Skillz (NYSE:SKLZ). The New York-based asset manager, known for establishing stakes in disruptive, emerging growth companies, purchased 173,800 shares of DraftKings stock on Monday as the name surged to an all-time high after eight sell-side analysts lifted price targets. Yesterday’s DraftKings purchase […]<\/p>\n","protected":false},"author":46,"featured_media":166000,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,1074],"tags":[],"acf":[],"yoast_head":"\n
ARK Invest Continues Feasting on DraftKings, Skillz<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n