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'Big Short' Burry Bets Against Wood's ARK Innovation ETF

Michael Burry, the hedge fund investor made famous by Christian Bale's portrayal in 'The Big Short,' reveals bearish stance on Wood's ARK Innovation ETF.
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Michael Burry, made famous through his depiction by Christian Bale in the film "The Big Short," took on ARK Innovation ETF's  (ARKK) - Get Free Report highly popular asset manager Cathie Wood.

At the end of the second quarter, Burry's Scion Asset Management owned bearish put contracts against 235,500 shares of ARK Innovation ETF, according to a regulatory filing Monday.

Stocks Decline on Worries That Global Growth Is Slowing

Electric vehicle maker Tesla  (TSLA) - Get Free Report is the biggest holding in ARK Innovation and Scion had puts on 1,075,500 Tesla shares, up from 800,100 shares in the first quarter.

Buyers looked to offset Burry's impact on Tesla after he unveiled the bet against the clean-energy carmaker.

Burry has been critical of Tesla CEO Elon Musk, tweeting in December about the company's "current ridiculous price." 

Put options give the buyer the right, but not the obligation, to sell a certain asset at a certain price at a defined point in the future. 

In June, Burry, who made billions betting against the U.S. housing market in the mid-2000s, tweeted a series of warnings about losses "the size of countries" in the event of cryptocurrency or meme-stock declines. 

"All hype/speculation is doing is drawing in retail before the mother of all crashes,” Burry wrote on Twitter before the posts were deleted,

Last week, Ark Investment Management added 82,867 shares of Grayscale Ethereum Trust bringing its total to more than 721,000.

Earlier, this month, ARK reduced its exposure in the chip and graphics card maker Nvidia  (NVDA) - Get Free Report as part of a broader adjustment of holdings within her ARK Next Generation Internet ETF  (ARKW) - Get Free Report and ARK Autonomous Technology and Robotics ETF  (ARKQ) - Get Free Report.

Wood sold 15,074 shares in Nvidia, estimated to be worth about $3.06 million.

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