by - Michael Burry took aim at Cathie Wood’s top ETF Ark Innovation in a tweet.
- The “Big Short” investor highlighted his stock’s collapse to pre-pandemic lows.
- Burry predicted Wood’s performance would not last and bet against her fund last year.
Cathie Wood’s iconic stock market was always going to crash on Earth, Michael Burry told a now deleted tweet.
The tech star’s Ark Innovation ETF (ARKK) quadrupled in value between March 2020 and February 2021, but has now given up all those gains.
“This is coming because it’s always been this way before,” Burry wrote on Monday, attaching a screenshot of ARKK’s stock chart over the past three years or so.
“How anyone over 40 didn’t see this coming is a mystery. The answer is greed.”
ARKK stock jumped from below $38 to a high of around $160 in the first year of the pandemic. Its rise has been fueled by the growing value of the fund’s stakes in companies such as Tesla, Zoom, Shopify and Coinbase.
But its shares have fallen 63% this year, reflecting a broad sell-off in tech stocks in the face of rising interest rates and a bleak economic outlook.
In February 2021, Berry predicted that Wood’s success would collapse and her fund would collapse in value.
“It’s too early, it’s too hot and, today, short sellers are cowards, but Wall Street will be ruthless in the end,” the investor of “The Big Short” fame tweeted at the time.
Ark was “defining an era,” Burry continued, possibly referring to the huge hype around speculative assets during the pandemic.
“If you know your history, there’s a pattern here that can help you. If you don’t, you’re doomed to repeat it,” he said.
The boss of Scion Asset Management also bet against Wood. Burry’s fund held put options on ARKK stock and on the fund’s largest holding, Tesla, in the second quarter of 2021.
Burry is best known for predicting and profiting from the collapse of the US housing bubble in the mid-2000s. He also invested in GameStop long before the meme stock boom and clashed with Elon Musk after criticizing the Tesla CEO.
Additionally, Burry has garnered attention for his dire warnings. For example, he sounded the alarm about the “biggest speculative bubble ever in all things” last summer and told investors buying the hype that they were signing up for the “mother of all crashes.”
Here’s a screenshot of Burry’s tweet to ARKK:
Michael Burry/Twitter
Read more: A Michael Burry expert breaks down what makes the ‘Big Short’ investor special. He also revisits Burry’s iconic bet against the housing bubble and his bets on GameStop, Tesla and Ark.
