What happened: In a brief released Monday, Burry disclosed a $ 31 million position against Wood’s benchmark innovation fund.
Ark Innovation ETF’s largest stake is Tesla Inc (NASDAQ: TSLA), followed by Teladoc Santé Inc (NYSE: TDOC) and of the year inc. (NASDAQ : ROKU).
Burry announced a significant put-option position against Tesla earlier in the year and has since spoken out about Wood’s funds, opposing the growth potential that the founder and CEO of Ark Invest sees in her investments.
Related Link: Michael Burry Bets Heavily Against Tesla, Cathie Wood’s Ark Funds In Latest Options
Return log fires: After the filing of Burry’s short position, Wood questioned his understanding of the innovation space.
“I don’t think he understands the fundamentals that create explosive growth and investment opportunities in the innovation space. Wood said Tuesday via Twitter.
To his credit, Michael Burry made a great fundamentals based call and acknowledged the looming calamity in the housing / mortgage market. I don’t think he understands the fundamentals that create explosive growth and investment opportunities in innovation.
– Cathie Wood (@CathieDWood) August 17, 2021
Short interest on the rise: Burry is not the only one betting that the price of the ARK Innovation ETF will drop.
CNBC today announced that the volume of put options on the ETF is on the rise and short interest on Wood’s fund is at an all-time high, with nearly 13% of shares outstanding short.
Wood maintains that her investments are in companies that she believes will “transform the world” over the next 10 years.
Which side are you on?
Action on ARKK prices: The ARK Innovation ETF traded as high as $ 159.70 and as low as $ 81.33 over a 52 week period.
It closed Tuesday down 0.93% at $ 115.89.