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The Big Short’s Michael Burry has recently called the subprime contract crisis and he has now turned his attention to the Ark Innovation ETF which invests in companies like Square and Tesla as well as GBTC. As revealed, Michael Burry has taken out a major short position against Ark Innovation ETF of Cathie Woods.
Michael Burry Takes Short Position Against Ark Innovation ETF of Cathie Wood
In accordance with the second-quarter 13f filings, the hedge fund Scion Asset Management of Burry has bought $31 million worth of bearish put options against 235,000 shares of the ETF. As for put options, they are a method of making a profit from the reduction in the value of a stock or fund.
It should be noted that Burry’s firm was not the only firm to short Ark’s fund, Laurion Capital Management held approximately $171 million worth of put options against 1.3 million shares as GoldenTree Asset Management, Cormorant Asset Management, and Moore Capital Management also held large bearish positions.
Cathie Wood shared a tweet on Monday that said:
“To his credit, Michael Burry made a great call based on fundamentals and recognized the calamity brewing in the housing/mortgage market. I do not believe that he understands the fundamentals that are creating explosive growth and investment opportunities in the innovation space.”
Long Time Crypto Bear Warns About Cryptocurrencies
Burry has been warning the retail investors for a long time now for investing in cryptocurrencies, as he warned that the retail investors could be lured into a crash. He said:
"All hype/speculation is doing is drawing in retail before the mother of all crashes. When crypto falls from trillions, or meme stocks fall from tens of billions, #MainStreet losses will approach the size of countries. History ain't changed."
Well, it should be known that Burry was the main character in the book named The Big Short by Michael Lewis, which later turned into an Oscar-winning movie.
Christian Bale portrayed his character in the film.