Cathie Wood's Ark Invest Increases Rocket Lab (RKLB) and Robinhood (HOOD) Stakes While Reducing Palantir (PLTR) Holdings

Key Highlights

Table of Contents

Ark Invest acquired more than 705K Rocket Lab shares valued at approximately $45M, positioning space technology as its primary investment focus
The firm purchased 28,589 Robinhood Markets shares worth $3.5M, marking a reversal after the stock surged over 30% in recent weeks
Major position reductions included Palantir ($25M) and Tempus AI ($27.7M)
Robinhood Chain’s daily revenue skyrocketed from under $200K to $4M in early September, leading Deutsche Bank to increase its price target to $136
The Ark Innovation ETF posted a five-year annualized return of -7.02%, trailing the S&P 500’s 11.22% performance

Last week witnessed significant portfolio adjustments by Cathie Wood’s Ark Invest, with the firm increasing exposure to space exploration, financial technology, cryptocurrency, and biotechnology sectors while reducing technology and healthcare positions.

Major Portfolio Additions

The space sector emerged as Ark’s primary investment priority. The firm accumulated over 705,000 Rocket Lab shares representing approximately $45 million in capital deployment. Within the fintech space, Ark acquired 456,000 Block shares valued at roughly $37 million.

Rocket Lab USA, Inc., RKLB

Additionally, Ark purchased 28,589 Robinhood Markets shares worth approximately $3.5 million. This move represents a strategic reversal following previous divestments, including the sale of 25,009 shares on August 26 and more substantial reductions in July.

Within the biotechnology sector, Ark established a position of 274,000 Intellia Therapeutics shares valued at about $3.5 million, complemented by minor stakes in Veracyte, Guardant Health, and Scribe Therapeutics.

Regarding cryptocurrency exposure, Ark acquired 35,000 Circle Internet Group shares worth roughly $3.3 million and expanded holdings in the 3iQ Solana Staking ETF.

Notable Position Reductions

Technology and healthcare sectors saw Ark’s most significant trimming activity. Palantir Technologies experienced a $25 million reduction. Shopify positions decreased by $23.6 million, while Advanced Micro Devices saw $8.1 million in cuts.

Healthcare positions also faced reductions, with Tempus AI trimmed by $27.7 million and Twist Bioscience by $11.9 million. Smaller reductions affected Deere and Roblox holdings.

Robinhood’s Performance Tied to Bitcoin Surge

Robinhood shares have climbed more than 30% throughout the past month, mirroring Bitcoin’s 23% appreciation toward the $80,000 threshold. The stock had previously dipped below $70 during Q2 when Bitcoin traded around $68,000.

On September 4, Deutsche Bank analyst Brian Bedell elevated his Robinhood price target from $115 to $136 while maintaining a buy recommendation. His optimism stems from robust expansion in Robinhood Chain, the company’s proprietary blockchain infrastructure.

Throughout mid-August, Robinhood Chain generated daily revenue below $200,000. However, metrics surged dramatically to $3.38 million on September 1 and reached $4.01 million on September 2, based on DeFiLlama analytics.

Deutsche Bank projects that Robinhood Chain revenue will maintain an annualized run rate surpassing $100 million moving forward.

Within the Ark Innovation ETF, Robinhood currently ranks as the seventh-largest holding, comprising 4.28% of total fund assets.

Wood has consistently advocated for Bitcoin publicly, describing it as “a technology revolution” and “a new global monetary system.” According to her perspective, Bitcoin possesses characteristics of both risk-on and risk-off assets as transformative technologies redefine economic structures.

As of September 4, the Ark Innovation ETF posted year-to-date returns of 12.09%, marginally trailing the S&P 500’s 12.75% gain during the identical timeframe. Over a five-year horizon, the fund delivered annualized returns of -7.02%, significantly underperforming the S&P 500’s 11.22% return.

Throughout the 12-month period ending September 3, the fund experienced approximately $1.71 billion in net capital outflows.

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