Famed asset manager Michael Burry (of “The Big Short” fame) is credited with predicting the Housing Crash. But now, Burry’s predicting diminishing returns for a famous money manager: Cathie Wood.
In its latest regulatory filing, Burry’s fund opened a bet against against the ARK Innovation ETF. Scion Asset Management purchased 2,355 put contracts against the ETF. According to Fintel, the value of the bet is worth over $30 million.
Hours after the news broke, ARK Invest’s Cathie Wood shared her two cents. Wood said that Burry “doesn’t understand the fundamentals that are creating explosive growth and investment opportunities in the innovation space.“
For Burry, it’s probably nothing personal. Earlier this year, Burry opened a put position against the Russell 2000 Growth ETF. He closed that bet in the latest quarter before opening up the ARK-related one. But that’s not even his wildest bet: Burry grew his existing $530 million put position against Tesla, the pick that brought Wood & ARK Invest to fame. In the latest quarter, Burry sized up the $TSLA short by 34%.
After reading all that, it’s hard to appreciate Burry’s other big bets and headlines — Burry made news earlier this year when he dropped serious dough on interest rate bets and Big Tech companies like Facebook and Alphabet.