Michael Burry, famous for the movie "Big bears", has targeted one of Wall Street's most popular stars.
Burry's Scion Asset Management held 235500 put options on ARK Innovation ETF (symbol ARKK) as of the end of the second quarter, according to Monday's regulatory filing. The positions are worth about $31 million, according to the documents.
The flagship ETF owned by Cathie Wood and her company Ark Investment Management has attracted a lot of money over the past year after the sweeping victory of the Zhongkang technology stock strategy in 2020. But this year, Wood and Ark have struggled to maintain that momentum because of concerns about high valuations and accelerating inflation.
Burry has been warning of unsustainable valuations for months. He warned in June that retail investors investing in cryptocurrencies and online celebrity stocks could be dragged into an irrevocable crash.
Burry has already shorted Tesla, Inc. substantially.To indirectly short Wood-- Tesla, Inc. is one of the preferred stocks of Ark, and it is also the largest position of ARKK.
Burry increased its put bet on Tesla, Inc., holding put options on 1075500 Tesla, Inc. shares, up from 800100 in the first quarter, according to Monday's filing.
As of 12:25 New York time, ARKK was down 2.6 per cent as technology stocks fell. Tesla, Inc. 's shares tumbled 4.7% as the United States launched a formal investigation into its Autopilot system.