Cathie Wood Increases Investment in Intellia and L3Harris, Reduces Position in Kratos Holdings
ARK Invest Portfolio Adjustments: Cathie Wood's ARK Invest made significant changes to its ETFs, acquiring shares in Intellia Therapeutics and L3Harris Technologies while reducing its stake in Kratos Defense.
Strategic Shift in Defense Investments: The ARK Space Exploration & Innovation ETF sold shares of Kratos Defense while investing in L3Harris, which recently secured a major contract from the U.S. Navy, indicating a strategic pivot within defense contractors.
Biotech Investments: The ARK Innovation ETF and ARK Genomic Revolution ETF collectively purchased over 112,000 shares of Intellia Therapeutics, reflecting Wood's ongoing commitment to biotech and gene-editing technologies.
Analyst Ratings: Wall Street analysts have given a "Strong Buy" consensus rating to L3Harris, Kratos Defense, and Intellia, with Intellia showing the highest potential upside for the next year.
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- IPO Popularity: SpaceX's IPO has emerged as one of the hottest events on the financial calendar this year, with an initial price of $135, and many retail investors unable to secure their desired shares, highlighting strong market interest and demand for space exploration.
- ETF Investment Opportunities: Investors can gain indirect exposure to SpaceX by purchasing ETFs that include the company, such as the ARK Space & Defense Innovation ETF (ARKX), which allocates 9.4% to SpaceX; despite a 0.75% expense ratio, it has generated over 65% returns in the past year, indicating significant investment potential.
- Supplier Investment Potential: Major suppliers to SpaceX, like Redwire and Filtronic, are likely to benefit from the company's substantial funding and increased demand, with Redwire focusing on space infrastructure construction, which is expected to drive its stock price higher.
- Long-Term Investment Perspective: Investors should consider their long-term allocation to SpaceX within their portfolios, as companies like Alphabet hold a 6% stake in SpaceX, reflecting confidence from large tech firms in its future growth, and it is advisable to monitor its performance over the next 5 to 25 years.
- Surge in Supplier Demand: SpaceX's upcoming spending spree is expected to benefit its main suppliers like Redwire, which focuses on building space infrastructure, particularly solar panels, potentially leading to a surge in demand and driving business growth.
- Portfolio Allocation Advice: Investors should consider the long-term potential of SpaceX when allocating their portfolios, especially as its stock is likely to attract more attention once it enters broader indexes like the Nasdaq-100.
- ETF Investment Opportunities: The ARK Space & Defense Innovation ETF holds 9.4% of SpaceX, and despite a 0.75% expense ratio, it has generated over 65% returns in the past year, highlighting its investment value in innovation and new technologies.
- Market Volatility Analysis: The post-IPO period for SpaceX is expected to be more volatile than that of other newly listed companies due to untapped space potential and technological uncertainties, necessitating careful risk-reward assessments by investors.
- Tech Stock Decline: Alphabet's stock fell over 5% following the announcement of Google DeepMind VP Jumper's departure, leading to a broader decline in major tech stocks, which may heighten investor uncertainty regarding the tech sector's future performance.
- Oil Price Volatility: Oil prices initially surged over 2% after Iran threatened to close the Strait of Hormuz, but later retreated due to reported progress in peace talks with the US, highlighting the direct impact of geopolitical tensions on market dynamics and prompting investors to reassess energy sector risks.
- Market Expectation Shift: The market is currently pricing in a 39% chance of a 25 basis point rate hike at the upcoming FOMC meeting, reflecting a cautious investor sentiment towards future monetary policy, which could influence market liquidity and investment strategies.
- Overseas Market Performance: European and Asian stock markets closed higher, with the Euro Stoxx 50 and Japan's Nikkei 225 rising by 0.29% and 1.55% respectively, indicating a divergence in global market trends that may provide some support for the US market.
- Tech Stock Decline: Alphabet's stock fell over 6%, leading the tech sector down after the announcement of Google DeepMind VP Jumper's departure to Anthropic PBC, raising concerns about the company's future and potentially impacting investor confidence.
- Market Volatility Factors: Stock index futures weakened overnight due to a more than 2% rise in oil prices following Iran's threat to close the Strait of Hormuz, although they recovered later due to reported progress in peace talks with the U.S., highlighting geopolitical influences on market dynamics.
- Bond Yield Changes: The 10-year U.S. Treasury yield rose to 4.503%, a one-week high, driven by Fed rate hike expectations and an upcoming $211 billion Treasury auction, which may exert pressure on the bond market.
- Overseas Market Performance: European and Asian stock markets saw gains, with the 10-year German bund yield falling to 2.946%, reflecting optimism about global economic recovery, which could provide support for the U.S. market.
- New Aircraft Unveiling: President Trump unveiled the new Air Force One, a Boeing 747-8 gifted by the Qatari government and overhauled by L3Harris Technologies, marking a modernization of presidential air travel services at Joint Base Andrews.
- Luxury Design Upgrade: The aircraft features a new red, white, and blue color scheme, replacing the existing baby blue livery, which Trump stated reflects his personal taste and showcases an unprecedented level of luxury, enhancing the image of presidential travel.
- Operational Efficiency Improvement: The new aircraft will undergo initial commissioning flights for final testing of modifications, expected to alleviate the strain on the two current VC-25A Air Force One planes that have been in service since the 1990s, thereby improving operational efficiency for presidential air travel.
- Future Delivery Plans: This new aircraft will serve as a temporary replacement until Boeing delivers two new VC-25B jets in 2028, ensuring the continuity and reliability of presidential air services while preparing for future aviation needs.
- Delivery Milestone: L3Harris transformed a 747-8i into the first VC-25B in just 10 months, ensuring continuity of the Presidential Airlift mission and marking a significant advancement in the modernization of the Air Force One fleet.
- Efficient Production: To meet the accelerated delivery timeline, the team operated around the clock in three shifts, demonstrating deep expertise and commitment to customer needs, ensuring production readiness when required.
- Strategic Investment: By investing early in the program ahead of formal demand, L3Harris ensured sufficient capacity and talent were in place when the customer needed them, reflecting the rapid response capability within the defense industrial base.
- Enhanced Communication Capability: The VC-25B is equipped with a new communications system that provides the Office of the President with an airborne command post, ensuring secure and resilient connectivity to respond to global events seamlessly.











