We share weekly commentaries with investors on stocks in our strategies that have appreciated or dropped more than 15% in a day during the course of the week. We hope you find this commentary useful.
Shares of Farfetch traded up 15% on Tuesday, participating in a broad-based rally in consumer stocks. Farfetch operates online and physical marketplaces for luxury retail goods internationally, as well as back-end technology solutions for third-party retailers. We believe the company is well-positioned to monetize on luxury retail's shift from brick-and-mortar to e-commerce and e-concession business models.
Shares of Invitae traded down 17% on Tuesday after the company announced a major strategic realignment and corporate restructuring. Invitae’s current COO, Kenneth D. Knight––previously VP at Amazon (AMZN)––will replace Sean George as CEO. Randy Scott, Invitae’s co-founder and former CEO, will take an active role as Chairman of the Board, and co-founder Sean George will remain on the Board.The genetic testing and information company will reduce its workforce and geographic footprint to lower costs and will focus on its most profitable markets and products. Invitae will continue to invest in areas with mature reimbursement schemes where it enjoys a commanding presence and/or differentiated capabilities: oncology, reproductive health, rare disease, and pharmacogenomics. Importantly, the company will continue integrating its robust suite of digital services into its testing menu to create product experiences that, in our view, no other firm can replicate.Although Invitae’s leadership and ARK firmly believe in the viability of genome management as a service, the current market environment and the company’s leveraged balance sheet no longer will accommodate Invitae’s previous broad-based and aggressive investment plans. Over the next year, we believe Invitae will have to demonstrate operational improvements and commercial execution in its new oncology services. If successful, which we believe it will be, Invitae should be able to refinance its 2024 debt on favorable terms. Based on discussions with Invitae’s executives and board members, we believe that the future returns to this strategy far outweigh the risks, especially at its current valuation.
注：Invitae周二股价下跌17%，此前该公司宣布进行重大战略调整和公司重组。Invitae目前的首席运营官Kenneth D. Knight--之前是亚马逊（AMZN）的副总裁--将取代Sean George担任首席执行官。Invitae的联合创始人和前首席执行官Randy Scott将作为董事会主席发挥积极作用，联合创始人Sean George将继续留在董事会中。Invitae将继续投资于具有成熟的报销计划的领域，它在这些领域享有绝对的优势和/或差异化的能力：肿瘤学、生殖健康、罕见病和药物基因组学。重要的是，该公司将继续把其强大的数字服务套件整合到其测试菜单中，以创造我们认为其他公司无法复制的产品体验。尽管Invitae的领导层和ARK坚信基因组管理作为一种服务的可行性，但目前的市场环境和该公司的杠杆资产负债表不再能适应Invitae以前广泛和积极的投资计划。在接下来的一年里，我们相信Invitae将必须证明其新的肿瘤学服务的运营改进和商业执行。如果成功的话（我们相信它将会成功），Invitae应该能够以有利的条件对其2024年的债务进行再融资。根据与Invitae高管和董事会成员的讨论，我们认为这一战略的未来回报远远超过了风险，特别是在其目前的估值下。
Verve Therapeutics (VERV)
Shares of Verve Therapeutics traded up 22% on Tuesday, after the company’s recent announcement that it dosed its first human patient with an investigational in vivo base-editing medicine, VERVE-101, as a potential treatment for heterozygous familial hypercholesterolemia. The treatment could offer an alternative for hypercholesterolemia patients who have difficulty managing the side effects of statins and other therapeutic options. Founded by world-renowned experts in cardiovascular medicine, human genetics, and gene editing, Verve Therapeutics develops transformative once-and-done therapies for coronary heart disease.
Shares of Silvergate Capital traded up 22% and 16% on Tuesday and Wednesday, respectively, after the company reported second-quarter earnings that surpassed analyst estimates and the crypto markets began to rally. Notably, during the second quarter, US dollar transfers on the Silvergate Exchange Network (“SEN”) increased 34% sequentially, faster than the 6% growth in the crypto market as defined BTC (bitcoin) and ETH (ether). Founded in the late 1980s as a traditional commercial bank, today Silvergate is focused on providing banking services to companies seeking exposure to cryptoassets.
Shares of Monday.com traded up 16% on Wednesday, participating in a broad-based rally in software stocks. We maintain long-term conviction in Monday.com's ability to increase market share in the cloud-based productivity and collaboration software space. Monday.com provides cloud-based software applications and work management tools globally.
Shares of Senti Biosciences traded up 17% on Wednesday, participating in a broad-based rally in genomics stocks. Senti Biosciences uses genetic logic circuit technology to develop highly precise medicines and cell therapy treatments for a broad range of indications.
Shares of 1Life Healthcare (One Medical) traded up 68% Thursday after the company announced that Amazon is acquiring it for $3.9 billion. 1Life Healthcare provides a membership-based, primary care platform with seamless digital health and in-office care.
Shares of Velo3D rose 16% on Thursday in response to news of the company’s partnership with Hartech Group to distribute its end-to-end additive manufacturing solutions to the federal government. Velo3D is an additive manufacturing and 3D printing company specializing in support-free powder bed fusion. SpaceX is its largest customer and a strategic investor.