“Michael Burry doesn’t understand innovation space,” said Cathie Wood in her tweet on Tuesday in response to “The Big Short” investor’s bet against her ARK Innovation ETF a day earlier using options.
“To his credit, Michael Burry made a great call based on fundamentals and recognised 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,” the billionaire investor posted on Twitter.
Bury also betted against Tesla Inc
Burry bought 2,355 put contracts via his Scion Asset Management during the second quarter against Wood’s flagship tech ETF. The regulatory filing on Monday did not disclose if he still holds the position.
Burry also added to his position against Tesla Inc on Monday – another call that goes against Wood, who’s strongly bullish on the electric car manufacturer for the long term. Making up over 10% of ARK Innovation, Tesla is currently the largest holding in Wood’s flagship ETF.
Scion Asset Management has so far not responded with a comment. The news comes only days after Cathie Wood expanded her position in Palantir after the software company’s Q2 results.
ARK Innovation returned roughly 150% in 2020
According to FactSet, Wood’s fund now has roughly $22.5 billion worth of assets under management, including sizable holdings in innovation-focused companies like Teladoc and Zoom. ARK Innovation returned close to 150% last year that brought a bundle of investors to the fund, many of whom were from a younger demographic.
But not all of the fund’s holdings have been exciting. Some are still struggling to generate profits, weighing on shares of ARK Innovation this year that are still down 8% year-to-date. After peaking at $158 in February, the ETF tanked to $99 in May and is exchanging hands at $115 at the time of writing.
The post Cathie Wood blasts Michael Burry, says he doesn’t understand growth opportunities appeared first on Invezz.
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