5 Small-Cap Growth Stocks in Cathie Wood’s Portfolio

4. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)

Percentage of ARK Investment Management’s 13F Portfolio: 0.73%

ARK Investment Management’s Stake Value: $175.55 million

Number of Hedge Fund Holders: 17

Market Capitalization: $1.74 billion

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS), headquartered in San Diego, California, specializes in directed-energy weapons, unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, training and combat systems. By the end of March, Cathie Wood’s ARK Investment Management reported holding stakes worth $175.5 million in the defense company.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) announced on June 16 that it was awarded a contract to build a state-of-the-art C-band Geostationary Orbit Satellite Spectrum Monitoring Facility. The company is implementing this solution as part of a joint project with Japan’s main satellite operator, SKY Perfect JSAT Corporation for the Ministry of Internal Affairs and Communications in Japan.

Earlier this May, Canaccord analyst Austin Moeller reiterated his Buy rating and $23 price target on the company’s shares. According to the analyst, Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)’s acquisition of Southern Research’s engineering division enables it to further accelerate its current R&D efforts in the classified realm, including hypersonic vehicles, space/missile defense, and ISR sensor design.

According to the first quarter database of Insider Monkey, 17 hedge funds were bullish on Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS), compared to 18 funds in the last quarter. In Q1 2022, D. E. Shaw holds a notable investment in the company, with stakes worth $20 million.