Well-known for making big bets on the market, former hedge fund manager Michael Burry shared a take on Ark Invest CEO Cathie Wood, someone he has battled with before.
Burry, who is best known for “Big Short” and betting against the housing market, said the ETF from Ark Invest was always set to decline in value after a sharp run-up in price.
The Ark Innovation ETF was one of the most well-known funds after quadrupling in value from March 2020 to February 2021.
Burry bet against both the Ark Innovation ETF and core holding Tesla Inc TSLA previously.
“It is too early, she is too hot, and, today, short sellers are timid, but Wall Street will be ruthless in the end,” Burry tweeted previously in February 2021.
Burry said Ark was “defining an era” and that history would prove to be right.
“There is a pattern here that can help you. If you don’t, you’re doomed to repeat it.”
In the new tweet, Burry doubles down on being right about his prediction.
“This was coming because it has always been this way before. How anyone over the age of 40 did not see it coming is a riddle. The answer being Greed,” Burry said in a since-deleted tweet.
Burry attached a chart in the tweet that showed the decline in the price of the Ark Innovation ETF.
Why It’s Important: The Ark Innovation ETF has given up the gains it saw during the 2020 to 2021 period.
Wood previously took on Burry after he went against the Ark Innovation ETF saying the former hedge fund manager didn’t understand the fundamentals of high-growth technology stocks.
Core holdings of Ark Innovation benefitted from the surge in valuation for growth stocks. This included Tesla, Zoom Video Communications ZM, Coinbase Global Inc COIN, Roku Inc ROKU and others.
The Ark Innovation ETF went from $38 to a price of around $160 before falling. Shares currently trade at $35.74 at the time of writing and are down 63% year-to-date in 2022. Shares of the ETF have given up most of the gains and are now up only 3% over the past five years.
Burry has made huge public bets against the market several times and has a strong record of success. Known for calling the U.S. housing bubble, Burry also called for the “mother of all crashes” for the stock market last summer after stocks hit new highs.
Photo: BortN66 via Shutterstock
Image and article originally from www.benzinga.com. Read the original article here.