"Sister Wood's" latest portfolio adjustment: bought Broadcom and reduced holdings in another popular stock.

Author: Mackenzie Tatanani; Source: Barron's

ARK Invest, an asset management firm founded by renowned stock picker Cathie Wood, invests across multiple industries, from defense to robotics. This week, the fund made significant adjustments to its holdings, including buying shares in a hot semiconductor company while reducing its holdings in another high-profile company.

Transaction disclosures on January 8th show that the ARK Next Generation Internet ETF added Broadcom to its portfolio by purchasing 31,573 shares. Based on Thursday's closing price of $332.48 per share, this transaction is worth approximately $10.5 million. This is currently the only ARK ETF holding Broadcom stock.

It appears that ARK Invest bought the shares while Broadcom's stock price was falling.

Broadcom's stock price fell 3.2% on Thursday, following a decline in other AI-related stocks. However, the stock rebounded on Friday, closing up 3.76% at $344.97. The fund also reduced its holdings in Palantir by 58,741 shares, worth approximately $10.4 million on Thursday. Following this reduction, the fund's stake in the data analytics company decreased to 376,629 shares. Palantir has many supporters and is seen as a beneficiary of the US military action in Venezuela. However, the market remains skeptical about its high valuation. Additionally, the ARK Space & Defense Innovation ETF also adjusted its holdings, buying 162,270 shares of Joby Aviation and 73,097 shares of Archer Aviation. Both companies are working on developing autonomous electric aircraft. These two deals may be related to an announcement on Thursday when Archer Aviation announced it would integrate Nvidia chips into its air taxis. That news boosted its stock price by 3.4% and continued to rise on Friday. There are other developments as well. Joby Aviation said earlier this week that it expects to double its monthly production by 2027 after acquiring a manufacturing plant in Ohio. Ark Capital also sold 24,865 shares of Rocket Lab, which was the fund's second-largest holding after Kratos Defense & Security. As of Friday, the fund held 691,938 shares of Rocket Lab, worth approximately $58.5 million. Rocket Labs, considered a competitor to Elon Musk's SpaceX, saw its stock price roughly triple by 2025. Barron's has contacted ARK Invest for comment on these transactions.