Michael Burry, best known for his bet against the housing market featured in “The Big Short," recently disclosed a short position in Cathie Wood's ARK Innovation ETF ARKK.
What Happened: In a filing released Monday, Burry disclosed a $31 million position against Wood's benchmark innovation fund.
Ark Innovation ETF's largest holding is Tesla Inc TSLA, followed by Teladoc Health Inc TDOC and Roku Inc ROKU.
Burry announced a large put option position against Tesla earlier in the year and has since spoken out about Wood's funds, arguing against the growth potential the Ark Invest founder and CEO sees in her investments.
Related Link: Michael Burry Bets Heavily Against Tesla, Cathie Wood's Ark Funds In Latest Options
Wood Fires Back: Following Burry's short position filing, Wood questioned his understanding of the innovation space.
"I do not believe that he understands the fundamentals that are creating explosive growth and investment opportunities in the innovation space." Wood said Tuesday via Twitter.
Rising Short Interest: Burry isn't the only one betting the price of the ARK Innovation ETF is headed lower.
CNBC reported today that the volume of put options on the ETF is rising and short interest on Wood's fund is at an all-time high with nearly 13% of the outstanding shares being shorted.
Wood maintains her investments are in companies she anticipates will "transform the world" over the next 10 years.
Which side are you on?
ARKK Price Action: The ARK Innovation ETF has traded as high as $159.70 and as low as $81.33 over a 52-week period.
It closed Tuesday down 0.93% at $115.89.
See also: HOW TO BUY ARK INNOVATION (ARKK) ETF
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