Big Short’s Michael Burry targets Cathie Woods ARK ETF

Michael Burry, well-known investor in The nice brief movie movie, received a big brief place in opposition to Cathie Woods’ innovation fund ARK ETF

According to submitting 13f for the second quarter, Burry’s hedge fund Scion Asset Management purchased a $ 31 million low cost on the ETF’s 235,000 shares. A put choice is a approach of making the most of a decline within the worth of a inventory or a fund.

The Innovation ETF is the most important ARK fund, with belongings of $ 22.62 billion. It invests in plenty of disruptive know-how firms together with Tesla, Square, Coinbase, and Grayscale Bitcoin Trust.

Burry is not the one firm with a historical past of promoting brief ARK’s high funds. Laurion Capital Management holds roughly $ 171 million value of put choices on 1.3 million shares, with GoldenTree Asset Management, Moore Capital Management and Cormorant Asset Management additionally holding giant bearish positions.

But Wood appeared to benefit from the problem by tweeting about it Second:

“Michael Burry stood out for his contribution to fundamentals and recognized the calamity that is brewing in the housing / mortgage market. I don’t think he understands the fundamentals that drive the explosive growth and investment opportunities in innovation. “

Wood is a firm believer in crypto and in July ARK partnered with Switzerland-based 21Shares with the goal of creating a Bitcoin EFT.

That same month, Ark Invest bought over 450,000 GBTC shares in two separate purchases, and in April Ark bought Coinbase shares worth $ 110 million, some of which we went to the Innovation ETF.

However, Burry is a crypto bear and has been warning of an “unsustainable valuation” on the market for several months. In June he warned that investing in cryptocurrencies and meme stocks could lure private investors into the “mother of all crashes”. He tweeted:

“The hype / hypothesis solely attracts retail clients earlier than all of it collapses. If cryptocurrencies drop by trillions or meme shares drop by tens of billions, #MainStreet’s losses shall be roughly the dimensions of nations. History would not change. “

Burry is understood to call the actual property market crash through the international monetary disaster and profited tremendously from the subprime mortgage disaster. He is the principle character in Michael Lewis’ e book “The Big Short”, which was later transformed into an Oscar-winning movie wherein he was performed by Christian Bale.