Following Cathie Wood: Heavily buying defense leader KTOS, continuing to reduce positions in Robinhood and Teradyne

Last Friday (May 29), all three major stock indexes closed slightly higher, reaching new all-time highs. After the close, the S&P 500 recorded a rare nine-week consecutive gain—the longest such streak since December 2023.

After executing significant portfolio reallocations within the fintech sector on the prior trading day, on May 29, Cathie Wood concentrated her buying heavily in defense and national security technology companies, while continuing to reduce positions in brokerage firms $Robinhood (HOOD.US)$ and traditional semiconductor testing equipment $Teradyne (TER.US)$ at an accelerated pace.

Buy-side:

Significantly increased position in $Kratos Defense & Security Solutions (KTOS.US)$252,100 shares.KTOS’s share price had previously experienced a sharp correction. As a leading company in unmanned systems and national security defense technology, it recently secured a missile defense infrastructure contract in April with a total potential value of up to $400 million, providing high visibility into future revenue growth. Against the backdrop of escalating geopolitical complexity and the accelerating unmanned and AI-driven transformation of the defense industry, defense technology assets offer substantial long-term growth potential.

Sell side:

Accelerated reduction in $Robinhood (HOOD.US)$144,200 shares.Following its sale of 14,500 shares on the 28th, ARK significantly increased its divestment from this U.S.-based brokerage on the 29th. In terms of recent fundamentals, Robinhood’s first-quarter revenue fell short of market expectations, and cryptocurrency trading volumes have shown signs of weakness. Coupled with co-founder Baiju Bhatt’s recent series of substantial share sales, the stock faces near-term pressure.

Taking profits at highs $Teradyne (TER.US)$23,700 shares.Teradyne, a traditional leader in semiconductor automated test equipment, had previously experienced consecutive gains, pushing its valuation into a relatively high—and arguably expensive—range. Against the backdrop of accelerating AI chip iterations, TER, positioned in the later stages of the semiconductor cycle, lacks exponential growth potential. ARK continues its profit-taking strategy, liquidating legacy hardware holdings to improve capital allocation efficiency.

Minor reduction $Intercontinental Exchange (ICE.US)$447 shares.Although Intercontinental Exchange has recently been actively launching innovative financial products such as GPU computing power futures, its identity as traditional financial infrastructure has resulted in relatively muted stock performance amid the current tech-driven market rally. ARK’s small-scale reduction is part of routine liquidity management.

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