Cathie was a superstar in the rare world of active stock pickers when she started the year. Although she ends the year as a star, the volatility of her flagship funds illustrates the risks of aggressive stock picking.

Block, Coinbases, Unity Software, Zoom Video, and Twilio all fell more than 10%, while Spotify, Teladoc, Spotify, and Tesla saw smaller drops. Tesla, however, is her largest holding.

Wood sold most of her holdings and reduced some stakes Monday.

ARK Innovation: Largest holdings

(% Change in December)

Reduce your costs by 19%

Coinbase is down 15%

Unity Software at 15% Off

Zoom Video – 10% Off

Twilio down 9%

Teladoc reduced by 7%

Tesla down by 3%

Spotify drops 1%

ARK Innovation Fund: Outflows are very limited

The inflows reached their highest point in early 2015, with outflows reaching their lowest level. Detainers of her flagship will be disappointed, however, because she has volatile stocks. ARK Innovation Fund(ARKK) have shown remarkable loyalty. With 201,000,000 shares outstanding at the peak in April, there have been many changes. slow but steady trickle of outflowsToday, there are 173 million shares. This is down 15% from April’s peak. But, it has remained fairly stable in recent weeks.

This is remarkable loyalty considering the fact that the fund has fallen 21% and 38% from its 52-week peak in February. It also reached an intraday low of just weeks.

ARK Innovation ETF

Outstanding shares

April: 201 millions

Today: 173,000,000

Return on YTD: 21% lower

Discount of % on 52-week highs: 38%

Major holdings all hit new highs this year, with Tesla the exception. They are currently at minimum 30% of their 52 week highs.

How to avoid falling for innovation

Bottom line: There’s nothing wrong with Cathie Wood’s main line of reasoning–disruptive technology companies will change the world.

But, it is true that prices rise when investors buy into the argument. Prices go up for companies with little to no profits (Teladoc), Twilio Spotify, Unity Software, Unity Software), and trade at an incredible multiple of earnings (Roku Block, Tesla). Some investors may start to question the appropriate price.