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What is the process for managing and monitoring liquidity?
ARK’s portfolios are currently considered liquid according to the rules and regulations provided by the United States Securities and Exchange Commission (SEC). ARK monitors the liquidity of the positions as part of its investment process. ARK evaluates liquidity by measuring the size in a position against the number of days to liquidate under various percentages of market activity, typically 20%-25%. ARK tends to be a liquidity provider. If a stock’s share price has fallen in the market due to short-term controversy, ARK tends to increase its position (providing the thesis is unchanged). If exuberance is priced into a stock, ARK will trim the position to take profits.