Tesla is back on top in Cathie Wood's flagship ARK ETF as the famed money manager shakes up her largest holdings

• Tesla reclaimed the top spot among the holdings of Cathie Wood's flagship Ark Innovation ETF.
• The money manager sold nearly $42 million of Exact Sciences in the past week, booting it from the top position.

Cathie Wood's ARK Invest sold nearly $42 million of Exact Sciences shares in the past week, pushing the medical diagnostic company from its perch as the fund's top holding and replacing it with an old favorite—Tesla.

The famed money manager purchased 13,243 Tesla shares at the start of the week. The electric vehicle maker comprises 8.83% of the fund's total holdings.

Tesla has surged more than 22% in the past five days and is on pace for its largest monthly gain since last summer. Shares of the EV maker were up nearly 11% on Friday, trading around $178.

Tesla CEO Elon Musk painted an upbeat picture around demand for the company's vehicles in a fourth-quarter earnings call with investors.

"Thus far, in January, we've seen the strongest orders year-to-date than ever in our history," Musk said on Wednesday. "We are currently seeing orders that are almost twice the rate of production."

Zoom has been bumped to Ark Innovation ETF's second largest holding, with Exact Sciences now in third place.

The fund sold 640,340 Exact Sciences shares since January 23, worth $41.9 million on Friday. The money manager offloaded 1.2 million shares since the beginning of the year.

Exact Sciences is up 0.77%, trading at $65.5 on Friday. The stock has surged 33.53% in the past month.

Cathie Wood's Ark Innovation ETF has climbed 31% in the past month, and is on track for one of its strongest months ever. ARKK is up 2.35%, trading around $39 on Friday.

Investors appetite for tech-heavy bets like ARKK has returned somewhat, after getting crushed by the Federal Reserve's tightening of monetary policy last year. Traders are now eyeing cooler inflation that could put the central bank off of its path of aggressive rate hikes.

"I think the Fed is close to ending this tightening move," Wood said in a call with investors earlier this month, adding that a pivot would strengthen her funds' growth-focused strategy.