Catherine Wood is the chief investment officer of Ark Invest.
Patrick T. Fallon is a photographer.
The 20% gain in the Ark Invest flagship fund was not realized this year.
Ark Invest's Disruptive Innovation ETF has fallen more than 20% since it was launched.
Wood expects the growth oriented ETFs to deliver a compounded annual growth rate of up to 40% over the next 5 years.
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The fund is on track for its worst year of performance since it was launched, and it has been a difficult year for investors.
Ark Invest has more than $17 billion in assets under management in its flagship fund, thanks to the high returns of the ETFs in 2020. The S&P 500 is up 30% year-to-date while the ETF is down 21%.
Ark Invest's poor returns in 2021 were a surprise to Cathie Wood, who predicted a five-year compounded annual growth rate of 20% in December of 2020. She believes that the fund could deliver a five-year compounded annual growth rate of up to 40%.
The fund was up 25% at its peak in February, and Wood's prediction for a 20% gain in 2021 looked to be correct. The downturn in work-from- home stocks and unprofitable technology names dragged down its performance considerably.
Teladoc and Zoom Video have both fallen by 50% this year and have lowered the fund by 386 and 550 basis points, respectively.
Ark Invest's top performing holding,Tesla, which is up more than 50% year-to-date, boosted the fund by 286 basis points.
Ark Invest's flagship fund has had a rough year, with five of the company's six active funds delivering negative returns year-to-date. The worst performing fund is the Ark Genomic Revolution ETF, which is down about 32% year-to-date.
Business Insider has an original article.
