Tesla Is Back on Top in Cathie Wood’s Flagship ARK ETF

• Tesla reclaimed the highest spot among the many holdings of Cathie Wood’s flagship Ark Innovation ETF.
• The cash manager sold nearly $42 million of Exact Sciences previously week, booting it from the highest position.
• ARKK is up 31% previously month as investors wager high inflation is behind them.

Cathie Wood’s ARK Invest sold nearly $42 million of Exact Sciences shares previously week, pushing the medical diagnostic company from its perch because the fund’s top holding and replacing it with an old favorite—Tesla.

The famed money manager purchased 13,243 Tesla shares at first of the week. The electrical vehicle maker comprises 8.83% of the fund’s total holdings.  

Tesla has surged greater than 22% previously five days and is on pace for its largest monthly gain since last summer. Shares of the EV maker were up nearly 11% on Friday, trading around $178. 

Tesla CEO Elon Musk painted an upbeat picture around demand for the corporate’s vehicles in a fourth-quarter earnings call with investors. 

“So far, in January, we have seen the strongest orders year-to-date than ever in our history,” Musk said on Wednesday. “We’re currently seeing orders which are almost twice the speed of production.” 

Zoom has been bumped to Ark Innovation ETF’s second largest holding, with Exact Sciences now in third place.

The fund sold 640,340 Exact Sciences shares since January 23, value $41.9 million on Friday. The cash manager offloaded 1.2 million shares because the starting of the 12 months. 

Exact Sciences is up 0.77%, trading at $65.5 on Friday. The stock has surged 33.53% previously month.

Cathie Wood’s Ark Innovation ETF has climbed 31% previously month, and is heading in the right direction for one among its strongest months ever. ARKK is up 2.35%, trading around $39 on Friday.

Investors appetite for tech-heavy bets like ARKK has returned somewhat, after getting crushed by the Federal Reserve’s tightening of monetary policy last 12 months. Traders are actually eyeing cooler inflation that might put the central bank off of its path of aggressive rate hikes. 

“I believe the Fed is near ending this tightening move,” Wood said in a call with investors earlier this month, adding that a pivot would strengthen her funds’ growth-focused strategy.