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Cathie Wood's ARK funds experienced a brief surge following Donald Trump's recent election win.

Her flagship ARK Innovation ETF ( ARKK ) has returned 10.94% since Nov. 6, while the S&P 500 is up only 1.52%.

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Wood, CEO of Ark Investment Management, typically focuses on small- and mid-cap technology stocks, but she occasionally ventures into megacaps. This strategy likely aims to add stability to her funds.

Sometimes, she’ll even buy when the stocks are rising, and that’s what she did this month.

ARK’s long-term return is not so hot

Investors and analysts have varying opinions on Cathie Wood. Supporters see her as a visionary in tech investing, while critics say she’s an average fund manager.

Wood's followers nicknamed her “Mama Cathie,” driven by her transparent, accessible discussions of strategy in the media. She gained widespread attention with an impressive 153% return in 2020.

However, her longer-term performance isn’t so rosy.

Related: Cathie Wood sells $48 million of battered tech stock

The flagship ARK Innovation ETF, with $5.4 billion under management, has returned just 2.83% year-to-date, with an annualized three-year return of -22.9% and a five-year return of 3.61%.

In comparison, the S&P 500 is up 24.56% this year through Nov. 15, with a three-year annualized return of 9.52% and a five-year return of 15.29%.

Cathie Wood’s investment strategy explained

Cathie Wood’s investment strategy is simple: ARK ETFs typically buy shares in emerging, high-tech companies across fields like artificial intelligence, blockchain, DNA sequencing, energy storage, and robotics.

Wood believes companies in these areas will revolutionize industries, though the stocks are notoriously volatile, leading to substantial swings in the ARK funds’ values.

Investment research firm Morningstar has expressed sharp criticism of Cathie Wood and the ARK Innovation ETF.

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

"Investing in young companies with slim earnings 'demands forecasting talent, which ARK Investment Management lacks,'" wrote Morningstar analyst Robby Greengold, who described the ETF’s performance as ranging from “tremendous to horrendous.”

Wood defended herself in a July posting on Ark’s website. She acknowledged that “the macro environment and some stock picks have challenged our recent performance”, while reaffirming her “commitment to investing in disruptive innovation.”

Wood also stated that many of ARK’s investments are now in “rare, deep value territory” and anticipates her innovation-focused funds will benefit “disproportionately, as they did in the fourth quarter of 2023 and during the coronavirus crisis.”