By Evie Liu

Cathie Wood's ARK Invest bought more shares in Archer Aviation, showing its bullish stance on the drone company. The stock jumped nearly 8% in Friday trading, nearly doubling its value over the past month.

ARK Innovation ETF bought 4.7 million shares worth 0.45% of the portfolio. The fund, which made the buy on Thursday, now has a 2.14% weight in thestock, according to ARK's trading data published daily.

Two other Wood funds, ARK Autonomous Technology & Robotics ETF and ARK Space Exploration & Innovation ETF, also bought shares. Collectively, the funds acquired more than five million shares worth $36 million, about 1% of the stock's total market value.

ARK's investment comes after the Archer announced a partnership with Anduril Industries, a defense tech company, to develop a hybrid aircraft. Archer has raised $430 million through an equity offering, part of which will be used for the new development.

In another move, the ARK Innovation ETF dumped nearly 35,000 Tesla shares worth 0.2% of its portfolio. The fund still has a nearly 16% weight in the electric car maker's stock, its top holding. The ARK Autonomous Technology & Robotics ETF also slightly trimmed its Tesla holdings.

Tesla's stock has been rallying this year, buoyed by hopes for potential interest rate cuts by the Federal Reserve. Shares have soared 71% this year.

Wood is a big Tesla bull, having argued the stock would hit $2,600 a share by 2029. The price is now about $425.

Tesla has been on a roll, hitting a record high this week. Thursday marked the second consecutive day that ARK sold shares. The ARK Innovation ETF sold about 50,000 Tesla shares on Wednesday.

The fund is up 21% this year, with much of the gains coming in the past three months. It trains the S&P 500's 28% gain, but marks its best best-performing year since 2020.

Write to Evie Liu at evie.liu@barrons.com

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December 13, 2024 11:25 ET (16:25 GMT)

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