ARKK's Health Sleeve: 28% of the Fund, No Holding Above 61
ARKK's genomics, diagnostics and therapeutics holdings make up 28.1% of the fund. On the Blitz Index they average 51.8, and none reaches the 65 line. Remove them and ARKK averages 63.3. The reason is not that the science is weak. It is where the ruler finds the business.
The sleeve
| Company | ARKK weight | Blitz Index | One-line reading from the scorecard |
|---|---|---|---|
| Tempus AI (TEM) | 6.19% | 55 C | Business sections sum to 69; demerits of −14 take it to 55 |
| CRISPR Therapeutics (CRSP) | 4.41% | 48 C | CASGEVY approved and ramping — own product revenue $0 |
| Twist Bioscience (TWST) | 3.17% | 56 C | Creative destruction leads (12/15); GAAP profit lags margin gains |
| Beam Therapeutics (BEAM) | 2.68% | Gate failed — G1 | — |
| 10x Genomics (TXG) | 2.36% | 40 C | Three flat years; second act booked, not billed |
| Intellia Therapeutics (NTLA) | 2.15% | Gate failed — G1 | — |
| Recursion (RXRX) | 1.47% | 44 C | Partnership-routed PMF; realized gross margin 5% |
| Veracyte (VCYT) | 1.24% | 58 C | Profitable, 70.1% gross margin; second curve still proving speed |
| Natera (NTRA) | 1.16% | 52 C | Margin-proven diagnostics carrying a $292.5M verdict |
| GeneDx (WGS) | 1.04% | 56 C | Distribution built by guidelines and coverage; volume outruns revenue |
| Illumina (ILMN) | 1.04% | 61 B | Sequencing incumbent; NovaSeq X transition just clears B |
| Pacific Biosciences (PACB) | 0.58% | Not yet scored | — |
| Cerus (CERS) | 0.34% | Not yet scored | — |
| Eli Lilly (LLY) | 0.23% | Gate failed — G2 | — |
Sleeve totals: 14 holdings, 28.1% of ARKK. Nine scored (22.1% of the fund), weighted average 51.8, equal-weighted 52.2. Highest score: 61.
What the sleeve does to ARKK
| Weighted avg. score | Share of ARKK's scored weight | |
|---|---|---|
| ARKK, all scored holdings | 59.5 | 100% |
| Health sleeve | 51.8 | 32.3% |
| ARKK excluding the sleeve | 63.3 | 67.7% |
The sleeve is a third of ARKK's scored weight and pulls the fund's average down by about 3.7 points. It also explains the shape of ARK's lineup: ARKG, ARK's dedicated genomics fund, is the only ARK fund with zero holdings in the 65+ Club, and its summary-card average is 51.9 — almost identical to the sleeve inside ARKK.
Three reasons the ruler is hard on this sleeve
Reading the nine scorecards together, three patterns recur. None of them is "the science doesn't work."
1. Product-market fit routed through partners
The Blitz Index measures the company in front of it, and several of these companies sell through someone else.
CRISPR Therapeutics is the clearest case. CASGEVY — the first approved CRISPR therapy — is commercialized by Vertex, and at the joint-venture level its quarterly revenue was $76M in Q2 2026 (Vertex-reported). On CRISPR's own income statement, product revenue is $0 and the net collaboration line was −$213.5M for the year: its share of costs still exceeds its share of profit. The company passes G1 only on a borderline reading, and moat scores 24 of 60.
Recursion is the second case of the same pattern, per its scorecard: partner cash is real, but realized gross margin is 5%. Beam and Intellia, also in gene editing, did not pass G1 at all.
2. Creative destruction high, moat and margin low
Where the business is measured directly, the sections split. CRISPR and Tempus both score 12 of 15 on creative destruction — a one-time cure replacing chronic dosing; data-driven diagnostics replacing single-analyte tests — and Twist's scorecard says the same section leads its score. But the moat section, which weighs network effects, distribution scalability and gross margin, is where the points stop. Sixty of the hundred points live in moat; fifteen live in creative destruction. A sector whose strongest section is the smallest one will score in the C range even when the disruption is real.
3. Demerits where the business is otherwise strong
Tempus AI is the sharpest illustration that the sleeve's scores are not about business momentum alone. Its speed, moat and creative destruction sections sum to 69 — above the line on their own. Demerits of −14 bring it to 55: founder voting control of 57.9% with a combined CEO-chair role, related-party revenue that rose from $4.5M to $65.3M in one year, and debt at about 4.3 times equity. Its demerit total sits one point below the −15 BlitzFailing watch line. Organic diagnostics still grew 31.2%, and gross margin rose from 40.6% to 62.7% in four years.
Natera tells a smaller version of the same story — margins proven, a courtroom verdict carried as a cost.
The ones closest to the line
The sleeve's best scores belong to the most commercially mature names: Illumina (61), Veracyte (58), GeneDx and Twist (56). Veracyte is profitable at a 70.1% gross margin; Illumina is the incumbent clearing B on a platform transition. That is consistent with the rest of our research: the Blitz Index rewards margin-proven execution, and in health care that proof tends to arrive late.
The boundary
This is a cross-section of scorecards, not a verdict on genomic medicine. Several of these companies have historic scientific achievements and long runways; CRISPR's scorecard notes roughly six years of cash. Scores are re-examined after each earnings report, and specific triggers — a positive collaboration line, a company-recognized revenue line, a reversal of related-party growth — are named on each scorecard. The score measures how the business is built to win, not how the science will fare and not what the stocks will do. Our ARK backtest is a useful reminder: at the 2022 trough, Twist Bioscience was a mid-tier C grade and returned +571%.
BlitzLab scores businesses against a scholar's standard — not investment advice. No price targets, no buy/sell recommendations. Holdings come from ARK Invest's daily public disclosures; BlitzLab is not affiliated with ARK Invest and this research is not endorsed by them. Company figures are as labeled on each scorecard (SEC-filed, company-reported or press-reported).
Sources
- BlitzLab, "ARKK's Holdings, Graded." — https://blitzlab.app/ark/arkk/ — holdings as of 11/04/2026 — checked 2026-11-05
- BlitzLab, "ARK's Holdings, Graded." (ARKG summary card) — https://blitzlab.app/ark/ — checked 2026-11-05
- BlitzLab, "Tempus AI — Blitz Index 55 (C)" — https://blitzlab.app/companies/tem/ — Oct 2026 — checked 2026-11-05
- BlitzLab, "CRISPR Therapeutics — Blitz Index 48 (C)" — https://blitzlab.app/companies/crsp/ — Oct 2026 — checked 2026-11-05
- BlitzLab, "All Company Scores" (taglines for TWST, TXG, RXRX, VCYT, NTRA, WGS, ILMN) — https://blitzlab.app/companies/ — checked 2026-11-05
- BlitzLab, "Can Our Model Tell ARK's Winners from Its Blowups?" — https://blitzlab.app/research/ark-backtest — 2026-10-15 — checked 2026-11-05