‘Big Short’ investor Michael Burry discussed his iconic bet against the housing bubble and foreshadowed his GameStop bet in a 2010 interview. Here are the 14 best quotes.

Michael Burry against a promotional backdrop for the movie "The Big Short."
Michael Burry.

  • Michael Burry has been warning of mass speculation, excessive stimulus, and a looming crash.
  • “The Big Short” investor expressed many of the same concerns in a 2010 interview.
  • Burry also reflected on the start of his career and his bet against the housing bubble.

Michael Burry has been sounding the alarm on rampant speculation in markets, runaway government spending, and investors’ failure to learn from past bubbles and crashes. He raised similar concerns in a Bloomberg interview in 2010.

The Scion Asset Management boss also discussed his iconic bet against the mid-2000s housing bubble, which was immortalized in the book and the movie “The Big Short.” Moreover, he explained what drew him to investing, touched on Warren Buffett’s influence on his career, and foreshadowed the GameStop investment that sparked the meme-stock craze this year.

Here are Burry’s 14 best quotes from the interview, lightly edited and condensed for clarity:

1. “I had some social challenges when I was younger. I was very attracted to being a rock star, an athlete, or something like a money manager. The reason being that they’re performance-based. Sports, it doesn’t matter how nice a guy you are. It doesn’t matter how you groom your hair. If you perform, that’s all you need to do. From a young age, I was pretty interested in the whole idea of meritocracy, and people being ranked according to their effort and talents. Running money was something where I could put the effort in and do it.”

2. “I’ve had these interests that have been very intense in my life. The two interests that are really intense being music and the markets. And every once in a while there’s something else that will catch my fancy for a little bit, but it always comes back to those two things.”

3. “My natural state is an outsider, and no matter what group I’m in or where I am, I’ve always felt like I’m outside the group, and I’ve always been analyzing the group.” – reflecting on his diagnosis of the dot-com and housing bubbles.

4. “I’m in this book, ‘The Big Short,’ but I’m not a big short. I don’t go out looking for good shorts. I’m spending my time looking for good longs. I shorted mortgages because I had to. Every bit of logic I had led me to this trade, and I had to do it.”

5. “Home-price appreciation was built into the mortgage market. Once home prices were no longer going up, the credit would start to be pulled away, and home prices would start to fall. That’s what I saw in 2005, and that’s why I made it the largest investment of my life.”

6. “My number one concern is there’s been a total abdication of personal responsibility throughout our entire society. I don’t think that anyone anywhere is taking blame themselves for what they did to contribute to the crisis. The most damaging thing we can do as a country is to blame a narrow set of people, and not look within ourselves for what each of us did or didn’t do that led to this mess.”

7. “I’m 100% sure that the economic policies and theories that got us into this mess won’t prevent the next mess from happening. By not learning the lessons we needed to learn, we’re essentially dooming ourselves to making the same mistakes. It’s that simple.”

8. “All those bailouts, all the stimulus, all this money we’re printing – this isn’t hitting us yet. It’s like we’re a teenager and we’ve got depression, and our parents have given us a credit card and said, ‘Go cure your depression.’ It’s not being made clear that we have to pay this back at some point.”

9. “It’s a giant gamble to leverage our future and our kids’ future and their kids’ futures to try to get out of this. It’s very difficult to predict exactly which way it’s going to go, but I don’t think it’s a good gamble.”

10. “We’ve become a nation of bubbleheads. We’ve just had this huge bubble burst, and now everybody has got their ideas on what the next bubble is and what’s going to blow up next. It’s not hard to say there’s a bubble; the tough part is predicting when it will burst.”

11.”I want an investment thesis that I haven’t heard about or seen. I’m looking for an original thesis.” – Burry eventually found that original thesis in GameStop. He invested in the video-game retailer in 2019, and wrote several letters to its directors urging them to buy back more than 80% of GameStop’s outstanding shares.

12. “I’m very interested in smaller tech companies. I’m interested in companies with a secular growth profile, or a secular history that is generally not dependent on what the government does. I’m looking for good products, good management, good market position, competitive dynamics.”

13. “There’s only one Warren Buffett. There’s no point in even trying to be like Buffett.” – Burry said the Berkshire Hathaway chief inspired him to become a money manager, and that he patterned his early career after Buffett.

14. “Wall Street always thinks stocks are cheap. I’d hate to live in New York and hear that 10 times a day.”

Read more: The founder of a Michael Burry subreddit explains ‘The Big Short’ investor’s unique appeal – and reveals the stocks hidden in his tweets

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‘Big Short’ investor Michael Burry teases a bet against crypto – and warns market speculation has reached historic levels

Dr. Michael Burry
Michael Burry.

  • Michael Burry is considering placing a wager against cryptocurrencies.
  • “The Big Short” investor asked on Twitter how he could bet against the digital coins.
  • Burry warned that market speculation has likely reached unprecedented levels.

Michael Burry, who made his name and fortune by betting against the housing bubble, has set his sights on a new target: cryptocurrencies.

“Ok, I haven’t done this before, how do you short a cryptocurrency?” he said in a now-deleted tweet this week. “Do you have to secure a borrow? Is there a short rebate? Can the position be squeezed and called in?”

Burry, whose massive wager against subprime mortgages was immortalized in the book and the movie “The Big Short,” emphasized that he was only considering taking a position against crypto.

“In such volatile situations, I tend to think it’s best not to short, but I’m thinking out loud here,” he tweeted.

The Scion Asset Management boss, who routinely deletes his tweets, recently locked his Twitter profile to new users. He cited the army of meme-stock and crypto zealots and bots commenting on his tweets to drum up interest.

“Crypto/Meme bots and pumpers reply to big accounts in huge numbers for the promotion,” Burry tweeted. “Deleting tweets knocks it back. Going Private allows tools to discourage them.”

“But it’s breathtaking, this religion of real and fake people,” he continued. “The speculation probably tops anything in history.”

Burry has repeatedly criticized crypto this year. He’s dismissed shiba inu coin as “pointless,” ridiculed dogecoin’s surging price, and warned bitcoin is a “speculative bubble” that’s fueled by huge amounts of leverage and vulnerable to government crackdowns.

The fund manager also compared the excitement around bitcoin, meme stocks, and other popular assets to the mid-2000s housing boom and the dot-com bubble. He warned they’ve been “driven by speculative fervor to insane heights from which the fall will be dramatic and painful.”

Besides his housing bet, Burry is known for investing in GameStop and inadvertently paving the way for the short squeeze on the stock in January, as well as the broader meme-stock frenzy this year. Notably, Burry’s latest portfolio update showed he was betting against Elon Musk’s Tesla and Cathie Wood’s Ark Invest.

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‘The Big Short’ investor Michael Burry dismisses shiba inu coin as ‘pointless’ – noting the dogecoin spinoff’s supply exceeds 1 quadrillion coins

Michael Burry
Michael Burry.

  • Michael Burry tweeted about shiba inu, the dogecoin-inspired cryptocurrency.
  • “The Big Short” investor dismissed the meme token, noting its supply exceeds 1 quadrillion coins.
  • Burry has warned against buying crypto, labeling bitcoin a speculative, debt-fueled bubble.

Michael Burry, the investor of “The Big Short” fame, isn’t a fan of shiba inu. He dismissed the dogecoin-inspired cryptocurrency, which has more than tripled in price over the past week, because there are too many of the coins in circulation.

The Scion Asset Management boss shared Coinbase’s description of the meme token in a now-deleted tweet, highlighting that its supply exceeds a quadrillion coins.

“Just saying, one quadrillion seconds is about 32 million years,” he tweeted. “One quadrillion days is 2.7 trillion years, or ALL of TIME, from the beginning of the universe, multiplied by 71,000. In other words, pointless.”

Burry’s tweet suggests he doesn’t view shiba inu as a compelling investment because the vast amount of coins in existence limits its possible price appreciation.

The hedge fund manager has been ringing the alarm on crypto this year. He described bitcoin as a “speculative bubble” fueled by huge amounts of leverage.

In addition, Burry questioned its long-term prospects, given the threat of government intervention. He also ridiculed dogecoin’s surge to a record-high price, labeling it “a doge’s breakfast.”

Moreover, Burry has compared the hype around bitcoin, meme stocks, and other popular assets to previous bubbles in housing and internet companies. He warned they’ve been “driven by speculative fervor to insane heights from which the fall will be dramatic and painful.”

Burry is best known for his lucrative bet against the mid-2000s housing bubble, which was immortalized in the book and movie “The Big Short.”

He also inadvertently paved the way for the meme-stock boom this year by investing in GameStop in 2019, and his latest portfolio update showed he was betting against Elon Musk’s Tesla and Cathie Wood’s Ark Invest.

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‘The Big Short’ investor Michael Burry warns the stock-market boom reminds him of the dot-com bubble – and rings the alarm on options mania

Michael Burry big short
Michael Burry.

  • Michael Burry said the recent surge in stocks reminded him of the dot-com bubble.
  • “The Big Short” investor compared the options-trading boom to debt-fueled speculation in the 1920s.
  • Burry has warned several times that a historic market crash is coming.
  • See more stories on Insider’s business page.

Michael Burry said the current market boom reminds him of the dot-com bubble, and compared the current options-trading frenzy to the rampant speculation that precipitated the Great Depression, in a flurry of recent tweets that have since been deleted.

The Scion Asset Management chief tweeted a screenshot of Financialweb.com’s stock chart. The defunct company behind Stock Detective and other financial-information websites saw its share price nosedive from a high of $28 to a fraction of a cent following the dot-com crash.

“A very common chart back in the day,” Burry said. “Looks vaguely familiar.”

Moreover, the hedge fund manager compared the bull market during the 15 years to 2000 to the run up in stocks over the past 15 years. He highlighted a 94% correlation between the Nasdaq 100’s performance in each of those periods, and a 95% correlation for the S&P 500 index.

The Scion chief also drew a parallel between the surge in people trading options on meme stocks such as AMC Entertainment, and the mass speculation that preceded the Wall Street Crash of 1929. He juxtaposed an article about the options mania with a quote by a statistician named Leroy Peavey in November 1929. Peavey blamed the market crash that year on a wave of leveraged speculation that pulled in “elevator boys, typewriter girls, and even schoolchildren.”

Burry is best known for predicting the collapse of the US housing bubble in the mid-2000s, and making a fortune by betting on a spike in subprime-mortgage defaults. His massive wager was chronicled in the book and the movie “The Big Short.”

The investor also bought a stake in GameStop and wrote several letters to the video-game retailer’s board in 2019, laying the groundwork for the short squeeze on the stock this year and the broader meme-stock trend. He recently tweeted a picture of a subpoena he received from the Securities and Exchange Commission, ordering him to cooperate with the regulator’s investigation into the GameStop saga.

Burry has been sounding the alarm over Twitter for several months. He’s warned dangerous levels of speculation in meme stocks, cryptocurrencies, and other assets will lead to the “mother of all crashes.” Scion was betting against Elon Musk’s Tesla and Cathie Wood’s Ark Invest as of June 30.

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‘Big Short’ investor Michael Burry offers an inside look at how his iconic bet against the housing bubble began

Michael Burry
Michael Burry.

  • Michael Burry offered an inside look at how his signature bet against the housing bubble began.
  • “The Big Short” investor directed a colleague in 2005 to identify shaky mortgage-backed securities.
  • Burry called out two subprime mortgage lenders who later ran into serious trouble.
  • See more stories on Insider’s business page.

Michael Burry, of “The Big Short” fame, reflected on the origins of his iconic bet against the US housing bubble, and praised a late colleague who helped him research the wager, in a tweet on Sunday.

“When it all began…and RIP Joe,” the Scion Asset Management boss said. “A more brilliant one, I never met.”

The investor shared a screenshot of an email he sent to one of his employees, Joe Sipley, on May 19, 2005. The email directed Shipley to analyze a list of mortgage-backed securities and pinpoint the riskiest ones – those linked to mortgages at high risk of default, but not priced to reflect that danger.

“I’d like you to comb through these … and identify the best 2005 shorts,” Burry said. He noted that Scion could bet against the questionable securities by purchasing credit-default swaps, an insurance-like derivative that would pay out handsomely if enough people defaulted on their mortgages.

Burry advised Sipley to pay close attention to the mortgage companies behind the bundled loans, highlighting New Century and Novastar in particular as their “documentation stinks.” New Century, one of the nation’s largest issuers of subprime mortgages, was forced into bankruptcy by the housing downturn in 2007. Novastar, another major subprime lender with a slew of internal issues, was also burnt badly when the bubble burst.

Sipley worked as an analyst at Burry’s hedge fund between 2003 and 2006, and returned to serve as Scion’s director of equities in 2013, his LinkedIn shows. He fought an aggressive form of brain cancer for eight years and died in 2019, according to his obituary.

Burry’s billion-dollar wager against the housing market was chronicled in the book and the movie “The Big Short.” More recently, the investor has sounded the alarm on the speculative craze around meme stocks and cryptocurrencies, predicted a historic market crash, and placed bets against Elon Musk’s Tesla and Cathie Wood’s Ark Invest.

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Warren Buffett’s favorite market indicator hits 205%, signaling stocks are way too expensive and a crash may be coming

Warren Buffett
Warren Buffett.

  • Warren Buffett’s preferred market gauge hit 205%, signaling stocks are heavily overvalued.
  • The “Buffett indicator” compares the stock market’s valuation to the size of the economy.
  • Buffett has said the gauge spiking is a “very strong warning signal” of a future market crash.
  • See more stories on Insider’s business page.

Warren Buffett’s favorite market indicator has climbed to 205%, signaling stocks are vastly overpriced and a crash may be coming.

The “Buffett indicator” takes the combined market capitalization of all publicly traded US stocks, and divides it by the latest quarterly figure for gross domestic product. It serves as a rough gauge of the stock market’s valuation relative to the size of the economy.

The Wilshire 5000 Total Market Index closed just shy of $46.69 trillion on Wednesday, as the S&P 500 and Nasdaq indexes ended the day at record highs. Meanwhile, the latest estimate for second-quarter GDP is $22.72 trillion, putting the Buffett indicator at 205%. That reading is well above the 187% it reached in the second quarter of 2020, when the pandemic was in full swing and GDP was about 15% lower.

Buffett praised his namesake gauge in a Fortune magazine article in 2001, touting it as “probably the best single measure of where valuations stand at any given moment.”

When the indicator surged to a record high during the dot-com bubble, it should have been a “very strong warning signal” of an impending crash, the famed investor and Berkshire Hathaway CEO added. The yardstick also soared in the lead-up to the global financial crisis, making it a useful tool for anticipating downturns. Both times, the indicator remained under 150%.

Read more: The threat of a stock market sell-off is growing, according to Bank of America. Here’s how investors can protect themselves from ‘fragility,’ and a simple options strategy that will buy them more upside.

However, the gauge is far from perfect. For example, it compares the previous quarter’s GDP to the stock market’s value today. GDP also excludes overseas income, whereas US companies’ market caps reflect the value of both their domestic and international operations.

Moreover, the pandemic has disrupted economic activity and depressed GDP since last spring, while also spurring the federal government to support companies, propping up markets in the process. As a result, the Buffett indicator’s readings may be artificially inflated, and could fall as the economy recovers and corporate aid is withdrawn.

Buffett’s indicator isn’t alone in predicting a painful sell-off. Michael Burry, the investor of “The Big Short” fame, warned earlier this year that the stock market is “dancing on a knife’s edge” and the “mother of all crashes” is coming. Jeremy Grantham, the market historian and GMO cofounder, has also sounded the alarm on a “fully-fledged epic bubble” that he expects to burst spectacularly.

Here’s the St Louis Fed’s version of the Buffett indicator (both market cap and GDP are indexed to the fourth quarter of 2007):

Buffett indicator
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Warren Buffett, Michael Burry, and other top investors just published their Q2 stock portfolios. Here are 5 key trades they made.

Michael Burry Warren Buffett
  • Warren Buffett, Michael Burry, and other top investors recently filed portfolio updates.
  • Buffett slashed his pharma stakes while Burry bet against Cathie Wood’s flagship ETF.
  • Bill Miller, Jim Simons’ RenTech, and the LDS Church also made notable trades last quarter.
  • See more stories on Insider’s business page.

Warren Buffett, Michael Burry, and other leading investors recently disclosed the contents of their stock portfolios as of June 30, revealing they made a range of striking moves in the second quarter.

Funds linked to Bill Miller, Jim Simons, and the Church of Jesus Christ of Latter-day Saints all made notable changes to their holdings, signaling their views on everything from Elon Musk’s Tesla and Cathie Wood’s Ark Invest, to meme stocks such as GameStop and AMC Entertainment.

Here are five of the key trades last quarter:

Warren Buffett slashed his pharma holdings

Warren Buffett

Buffett’s Berkshire Hathaway took a knife to its pharmaceutical holdings last quarter. It sold around $260 million of AbbVie stock, $307 million of Bristol Myers Squibb stock, and $645 million of Merck stock, based on the companies’ average closing share prices in the period.

The famed investor’s company only bought into the trio in the third quarter of 2020, and boosted its holdings in the fourth quarter. Yet Berkshire turned around and sold roughly $2.4 billion worth of pharma stocks in the first six months of this year, slashing its AbbVie and Bristol Myers Squibb stakes by about 20% and its Merck position by 68%.

While Buffett has been interested in owning a basket of pharma stocks for decades, he hinted in May that he didn’t fully understand them and wasn’t too comfortable holding them. That may explain the recent disposals.

Michael Burry bet against Cathie Wood

Michael Burry against a promotional backdrop for the movie "The Big Short."

Michael Burry of “The Big Short” fame purchased¬†bearish put options against 235,500 shares of Cathie Wood’s flagship exchange-traded fund Ark Innovation last quarter.

The Scion Asset Management chief tweeted in February that the hype around Wood had reached excessive levels. He compared her to past growth investors whose luck ran out, and warned that “Wall Street will be ruthless in the end.”

Burry also ramped up his bet against Tesla last quarter. Elon Musk’s electric-vehicle company is one of Ark’s biggest holdings, underscoring Burry’s skepticism of the mass disruption and technological revolution that Wood believes is coming.

The Scion chief is best known for predicting the collapse of the housing bubble in the mid-2000s, and making a fortune by betting on that outcome. He also helped pave the way for the GameStop short squeeze in January by investing in the video-game retailer and agitating for changes at the company back in 2019.

Bill Miller bought into Coinbase

Bill Miller
Investor Bill Miller, co-founder, CIO and fund manager for Miller Value Partners

Bill Miller’s fund, Miller Value Partners, bought around 122,000 shares of Coinbase worth $30 million last quarter. The investment underscores Miller’s continued faith in cryptocurrencies and the larger blockchain ecosystem.

Miller made his fortune as a value investor before losing 90% of it during the financial crisis. However, he’s a billionaire today thanks to early investments in Amazon stock and bitcoin.

Notably, his fund sold its GameStop shares before the video-game retailer’s stock went stratospheric in January, meaning it missed out on a massive windfall.

Jim Simons’ RenTech tripled its AMC stake

Jim Simons
im Simons attends IAS Einstein Gala honoring Jim Simons at Pier 60 at Chelsea Piers on March 14, 2019 in New York City.

Jim Simons’ Renaissance Technologies tapped into the meme-stock boom last quarter with a well-timed bet on AMC Entertainment.

The quantitative hedge fund, founded by the Cold War codebreaker and MIT math professor in 1978, tripled its stake in AMC in the three months to June 30. The movie-theater chain’s stock price skyrocketed nearly 500% in the period as retail investors piled in. As a result, RenTech’s position jumped nearly 20-fold in value to $103 million.

In contrast, RenTech slashed its stake in Tesla by 75% last quarter, reducing the value of its position to $138 million at the end of June.

The LDS Church cashed out its GameStop profits

FILE PHOTO: A flag flies at half mask outside the world headquarters of the Mormon Church for Thomas S. Monson, President of the Church of Jesus Christ of Latter-Day Saints (The Mormon church) in Salt Lake City, Utah, U.S., January 3, 2018.  REUTERS/George Frey
A flag flies at half mask outside the world headquarters of the Mormon Church for Thomas S. Monson, President of the Church of Jesus Christ of Latter-Day Saints (The Mormon church) in Salt Lake City

The Church of Jesus Christ of Latter-day Saints took its GameStop profits off the table last quarter.

Ensign Peak Advisors, the church’s $100 billion investment fund, invested in GameStop in the fourth quarter of 2020. The value of its position ballooned by about 900% in the first three months of the year thanks to the short squeeze on the stock.

Ensign didn’t list GameStop in its latest portfolio update, suggesting the fund cashed out the stake last quarter. It likely pocketed about $9 million from the exit, based on GameStop’s average closing share price in the period, or as much as $14 million it if sold when the stock surged in June.

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‘I don’t think the market is ready for this’: Cathie Wood outlines what short-sellers betting against her innovation strategy don’t get

Cathie Wood, CEO and chief investment officer of ARK Invest, on a purple background with the Ark Invest logos patterned behind her.
  • Cathie Wood responded to the recent increase in short bets against her fund in an interview with CNBC on Thursday.
  • The Ark Invest founder and portfolio manager said the market is not in a bubble and advances in technology will continue to drive stocks higher.
  • “I don’t think the market is ready for this,” Wood said.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Cathie Wood is hitting back amid a record rise in short-sellers betting against her fund, including Michael Burry of “The Big Short” fame.

Burry initiated a $31 million put position in the Ark Invest Disruptive Innovation ETF, according to a recent 13f filing. That’s on top of his $731 million put position in Tesla, which happens to be Wood’s highest conviction stock and largest holding at Ark.

Burry isn’t the only investor betting against Wood, with short interest in the ARKK ETF currently standing at a record 11.87%, worth more than $2.5 billion, according to data from Koyfin. On top of that, a Short ARK ETF prospectus has been filed with the SEC by Tuttle Capital Management.

But in an interview with CNBC on Thursday, Wood defended Ark’s investment strategy, which focuses on disruptive innovations and often includes buying fast growing but profitless companies like Teladoc, Spotify, and Twilio, and said that the market is no where near bubble territory.

“We couldn’t be further away from a bubble, and the reason for that is the innovation around which we have centered our research… are barely off the ground,” Wood said.

The investment manager pointed to falling SPAC prices and negative sentiment among investors as reasons why the stock market is not in a bubble.

“I remember the late 1990’s,” Wood said, after arguing that bearish investors believe the stock market is most definitely in a bubble.

“In a bubble, our strategy would have been cheered on, but we have nothing like that right now,” Wood said, pointing out that negative investors point to valuations as a reason for concern. But Wood believes the scenario in which a rise in interest rates will hurt valuations won’t materialize due to a surprise return to deflation, driven in part by technological innovation.

The five innovation platforms Wood focuses on are include DNA sequencing, robotics, energy storage, blockchain technology, and artificial intelligence.

“The seeds for all of these platforms were planted in the 20-years that ended in the tech and telecom bust, and ended in tears, and there’s a lot of muscle memory around that. But that’s not what’s going on right now. The seeds planted back then are beginning to flourish now, and it’s just beginning,” Wood explained.

All of these technology platforms “are about to experience S-curve [growth profiles] and feed one another’s S-curves. I don’t think the market is ready for this,” Wood said.

“We’ve never been at a more provocative time for innovation in history,” Wood said.

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Cathie Wood responds to Michael Burry’s new short position in her fund and says he doesn’t understand the current growth environment

Cathie Wood and Michael Burry
  • Cathie Wood has responded to Michael Burry’s new $31 million short bet against her Ark Invest innovation ETF.
  • In a tweet thread on Tuesday, Wood made the case for another move higher in innovation stocks.
  • “I do not believe that he understands the fundamentals that are creating explosive growth and investment opportunities in the innovation space,” Wood said.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Michael Burry’s short bet in Ark Invest’s Disruptive Innovation ETF has caught the eye of Cathie Wood, who responded in a tweet thread on Tuesday as to why Burry’s bet is misguided.

A recent 13F filing from Burry’s Scion Asset Management revealed a new $31 million put position in ARK Invest’s flagship ETF, as well as a growing put position worth $731 million in Tesla, which remains Wood’s highest conviction stock.

But according to Wood, Burry may not understand the current growth environment as inflationary pressures are likely to be short-term in nature.

“Most bears seem to believe that inflation will continue to accelerate, shortening investment time horizons and destroying valuations,” Wood explained. But Wood thinks supply-chain related issues will be resolved, helping relieve inflationary pressures.

Wood pointed to a sharp drop in certain commodity prices in recent weeks, including lumber, copper, and oil, as to why inflation may not linger for as long as some think. Used-car prices are also beginning to fall after an extraordinary rise, and a strengthening US dollar has also put pressure on commodity prices, according to Wood.

Meanwhile, the bull market in stocks has broadened to other areas and sectors of the market like value, energy, and basic materials.

“The bull market has strengthened, setting the stage we believe for another leg up in innovation strategies,” Wood said.

She continued: “In our view, the seeds for the innovation explosion that Ark Invest is dedicated to researching we planted during the 20 years ending with the tech and telecom bust. Having gestated for more than 20 years, these technologies should transform the world during the next 10 years,”

In a February tweet that’s since been deleted, Burry said Wood’s promises of disruptive growth and transformative technologies wouldn’t be realized. “Shades of Gary Pilgrim and PBHG Growth from the 1990s, or Gerald Tsai and the Manhattan Fund in the 1960s,” he tweeted.

Ark “is defining an era,” Burry continued. “If you know your history, there is a pattern here that can help you. If you don’t, you’re doomed to repeat it.”

But Wood is sticking to her strategy, and thinks while Burry struck big during the housing crash of 2008, that success might not be repeated this time around.

“To his credit, Michael Burry made a great call based on fundamentals and recognized 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,” Wood concluded.

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Michael Burry just unveiled a new short bet against Cathie’s Wood’s innovation ETF – but he’s far from the only skeptic

NYSE trader
  • Michael Burry revealed a new bet against Ark Invest’s Disruptive Innovation ETF in a recent 13F filing.
  • Burry bought puts in the ARKK ETF totaling about $31 million, according to the filing.
  • Bets against Cathie Wood’s flagship fund are piling up as one issuer seeks to launch a Short ARKK ETF.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Cathie Wood’s Ark Invest and the meteoric rise of its Disruptive Innovation ETF continues to attract skeptics willing to bet against the fund.

Michael Burry is the latest investor to reveal a bet against the ETF, according to Scion Asset Management’s second-quarter 13F filing. Burry initiated the new position by buying $31 million worth of puts in the ARKK ETF.

Burry’s not the only one, as the Disruptive Innovation ETF has a 30-day put-to-call ratio of 1.8, meaning more people are buying bearish put options on the fund than bullish call options.

Other investors are outright shorting shares of the ETF, with short interest currently sitting at a record high 11.63%, according to data from Koyfin. With 21.58 million shares sold short as of Friday, the bet against ARK Invest’s Disruptive Innovation ETF now totals $2.6 billion.

Eyeing an opportunity to capitalize off the rising short interest in Cathie Wood’s ARK Invest ETF, Tuttle Capital Management filed a prospectus with the SEC to launch a Short ARKK ETF earlier this month. The Short ARKK ETF will attempt to generate inverse returns to the ARKK ETF by entering swap contracts tied to the ETF. The ETF would make it easier for short sellers to bet against the fund.

Burry’s bet against ARK is likely tied to his conviction that Tesla is a short, given that Scion Asset Management’s largest position is a $731 million put position in the electric vehicle manufacturer, representing a whopping 35% of his fund’s more than $2 billion in assets under management. Burry increased his bet against Tesla by 34% in the second-quarter.

Tesla remains Ark Invests largest position by a significant margin, with it making up nearly 11% of the ARKK ETF as of Friday.

The ARKK ETF is down 7% year-to-date, but up 38% over the past year. The ETF was down about 3% on Monday.

Read more: Inside Cathie Wood’s China investing strategy: The Ark Invest CEO breaks down why she’s selling out of Chinese stocks – and what she’ll be buying instead with the cash raised

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