Sequel of “Big Short” on Cathie Wood’s ARK ETF

Cathie Wood’s Ark Investment Management manages a portfolio of funds focused solely on disruptive innovations in various sectors such as fintech, space exploration, genomics, robotics and the crypto space to name a few. ARK Innovation ETF (Exchange-traded fund) invests in disruptive innovative companies related to the genomics industry and other industrial innovative companies. The fund has a total return of 40.35% over the last one year. However, despite such performance ARK’s fund faced serious pressure from the market being unable to maintain the solid momentum.

 

According to a regulatory filing as of Monday, Michael Burry CEO & Founder of Scion Asset Management LLC, a private investment firm based in the U.S held bearish put contracts of 235,500 shares which is valued at $31 million against Ark Innovation ETF. Regulatory filings also show he has puts against 1,075,500 Tesla shares as well which accounts for 10.44% of the fund’s holdings.

Michael Burry is better known globally among a wide audience after premiering the movie “The Big Short” which plot featured his successful bets against mortgage back securities (MBS) during the financial crisis. Recently, he also warned the market about skyrocketing valuation of equities and retail investors investing in cryptocurrencies and betting against meme stocks.

As of the market closing on Monday, the ETF Innovation ETF traded at $116.98 at closing with a Net Asset Value (NAV) of $117.13.