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.
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.
Who's side are you on?
Submitted August 17, 2021 at 04:42AM by lib3rty47 https://ift.tt/3smJ61t
