Cathie Wood, fund manager of Ark Invest, one of the most closely followed asset managers, often seizes the opportunity to lock in gains if one of her stocks surges.

That’s exactly what she did this week.

Investors and analysts are split on Cathie Wood, arguably the most famous investor after Warren Buffett, the legendary billionaire behind Berkshire Hathaway.

Supporters hail her as a tech visionary, while critics argue she’s a mediocre money manager with subpar performance.

Affectionately dubbed "Mama Cathie" by fans, Wood became famous with a staggering 153% return in 2020, gaining popularity through her accessible media appearances.

Related: Cathie Wood's net worth: The Ark Invest CEO's wealth & income

But her longer-term performance isn't Buffett-esque. Berkshire Hathaway's annualized returns averaged about 20% since inception, approximately double the S&P 500's return over the same time period.

However, Wood’s flagship Ark Innovation ETF  (ARKK) , with $5.6 billion in assets, is down 10% in 2024, and returns have been negative 26% for the past three years and only 3% for five years.

That pales in comparison to the S&P 500. The benchmark index posted positive annualized returns of 36% for one year, 11% for three years, and 16% for five years.

Cathie Wood’s investment strategy

Cathie Wood focuses on disruptive innovation and invests in high-growth tech sectors like artificial intelligence, genomics, and blockchain. Her strategy emphasizes long-term potential and cutting-edge technologies despite short-term volatility.

Wood maintains that companies in those categories will be game changers, presumably with game-changing returns. However, high-growth stocks tend to be quite volatile, so the Ark funds’ values often fluctuate widely.

Morningstar, one of the most popular companies evaluating mutual fund and exchange-traded fund performance, is critical of Wood and Ark Innovation ETF.

Related: Cathie Wood buys $15 million of soaring mega-cap tech stocks

Investing in emerging companies with slim earnings “demands forecasting talent, which ARK Investment Management lacks,” wrote Morningstar analyst Robby Greengold. “Results range from tremendous to horrendous.”

In a July 2024 post on Ark’s website, Wood defended her strategy, admitting that “the macro environment and some stock picks have challenged our recent performance.”

However, she emphasized that her “commitment to investing in disruptive innovation has not wavered,” noting that many of Ark’s stocks are now in “rare, deep value territory.”