‘The Big Short’ Michael Burry Bets Against Cathie Wood’s Ark, Raises Tesla Puts
Michael Burry, the famed investor best known for his enormous bet against the US housing market bubble ahead of the 2008 financial crisis, has materialized his bearish view on some of Wall Street’s hottest stocks.
According to SEC regulatory filings published on Monday, Burry not only upped his wager against Cathie Wood’s EV darling Tesla (NASDAQ: TSLA), but also directly took aim at her ARK Innovation ETF (NYSE: ARKK). Burry’s Scion Asset Management increased its bearish bet against Musk by 34% from 3 months ago, and now holds put options on almost 1.1 million Tesla shares, totaling $731 million as of June 30.
Burry has been adamantly critical of Tesla CEO Elon Musk, previously warning that the EV maker’s sizeable valuation is not feasible in the long run, adding that the company has repeatedly failed to deliver on its promises. Despite this, however, Tesla shares still remain about 80% higher compared to year-ago levels.
The famed investor also took aim at major Tesla bull Cathie Wood, as regulatory filings show that Scion holds puts contracts on 235,500 shares of her ARK Innovation ETF. Wood’s ETF has soared by more than double since the beginning of the year, but has struggled to maintain momentum as of late due to rising inflation concerns and concerns over potentially overvalued tech stocks.
Burry made other notable changes to Scion’s portfolio at the end of June, buying up bullish call options on Walmart, Cardinal Health, and McKesson, as well as betting on a jump in Treasury yields.
Information for this briefing was found via the SEC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
