Cathie Wood has tempered her projections after sparking criticism for an ambitious forecast for returns at Ark Investment Management. 

The star fund manager drew rebukes after publishing a market commentary piece Friday that originally said that her “more concentrated flagship strategy today could deliver a 40% compound annual rate of return during the next five years.” Her flagship fund is the Ark Innovation ETF (ARKK), which is down about 24% this year after jumping almost 150% in 2020. 

Following questions about the legality — and wisdom — of such a statement, Ark has now published an update removing that particular wording and clarifying in a footnote that “this statement applies to Ark’s disruptive innovation strategies broadly and does not refer to any particular product or fund.”

“Please note that ARK revised this statement from its original version to clarify any misconception in the marketplace,” the footnote says, adding that the statement “is based on ARK’s research, current views, and assumptions and is not a guarantee for future results. Forecasts are inherently limited and cannot be relied upon.”

Even with the clarification, Wood still predicts a 30-40% compound annual rate of return during the next five years for Ark “strategies.”

Ark did not respond to a request for comment beyond the revised report on its website.

Although Wood’s Ark Innovation ETF is her best known, she has nine funds in total — six actively managed and three that track indices. Only one — her 3D Printing ETF — is currently posting positive returns for this year.

The updated post from Ark says that “the forecasts presented in this blog are based on Ark’s research on disruptive innovation and our five-year time horizon. There are inherent risks and volatility associated with innovation.”

Volatility has certainly whipsawed her strategies in 2021, spurred by skepticism about unprofitable tech companies, Covid-19 resurgences and shifting forecasts for interest rate hikes. It’s quite a shift from the end of 2020, when several of her funds had posted triple-digit returns for the year.

This article was provided by Bloomberg News.