ARK evaluates whether each investment opportunity: (i) will have the growth potential to earn a premium over the market; (ii) will offer investment potential for a duration of at least three to five years; and (iii) is and will continue to be sufficiently investable. Through this process, specific public equities percolate to the top as best positioned to benefit from the identified investment premise. As part of the scoring system for each company, an analyst’s projected 5-year return requires a 15% compound annual return hurdle rate to enter the portfolio. In addition, within each portfolio ARK tracks a stock’s “Thematic Relevance” with regards to the investment strategy, to evaluate its position.