Michael Burry of ‘Big Short’ Bets Against Cathie Wood

Michael Burry, the investor made famous by “The Big Short” movie, has taken aim at one of Wall Street’s hottest stars. Burry’s Scion Asset Management owned bearish put contracts against 235,500 shares of…

the ARK Innovation ETF (ticker ARKK) at the end of the second quarter, according to a regulatory filing Monday. The new position was valued at almost $31 million, the filing says.

The flagship exchange-traded fund of Cathie Wood and her firm Ark Investment Management lured billions in the past year after her thematic tech-focused bets trounced the market in 2020. But Wood and Ark have struggled to maintain momentum amid concerns about lofty prices and accelerating inflation.

Burry has been warning about unsustainable valuations in the market for months. In June, he cautioned that retail investors could be getting drawn into “the mother of all crashes” by investing in cryptocurrencies and meme stocks.

A put contract gives Scion the right to sell shares in the ETF before a certain date and at a previously agreed price. Its value increases if…

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