What is Thematic Investing?
ARK utilizes thematic investing to capture disruptive innovation. Thematic investing seeks to capitalize on long-term trends that cut across economic sectors and geographic boundaries. ARK believes thematic strategies can better adjust for rapid change and incorporate a deep understanding of the underlying drivers of long-term value creation and risk.
ARK researches across sectors, industries, and markets to gain a deeper understanding of the convergence and market potential of disruptive innovations, and thus size the investment opportunities more appropriately.
ARK’s thematic analysts ask the questions:
– Where is the next big disruptive innovation?
– What is the size of the total market?
– Which industries will be disrupted?
– Which companies will emerge as the winners?
What are the Benefits of Thematic Investing?
Thematic investing can offer a low correlation of relative returns to traditional growth strategies and negative correlation of relative returns to traditional value strategies, offering diversification for investors.
Alpha at Scale
While benchmarks reflect past successes, thematic investing seeks to capture future growth allowing investors to earn a market premium.
Hedge Against Rapid Change
A constant focus on secular changes and disruptive innovation can offer a portfolio hedge in a rapidly changing world and complement traditional index-based strategies.