Cathie Wood's 40% Return Prediction Draws Rebuke After Ark’s Rough Year

When Cathie Wood speaks, investors listen. But over the weekend, many weren’t so sure they were picking up what she was putting down.

The famed active manager sparked some skepticism among investment professionals with a market commentary piece on Friday on her website, where she said her ARK Innovation ETF “could deliver a 40% compound annual rate of return during the next five years.” That’s a bold claim for the tail end of 2021, which has proved to be her worst year since she started her Ark Investment Management. Plus, there’s only been one other time Ark’s five-year projection has been that high, she noted: at the end of 2018.