A legion of retail merchants helped make inventory picker Cathie Wooden’s flagship fund one of many hottest investments up to now yr. Now, some skilled traders are betting on its demise.
A number of hedge funds took out contemporary positions within the second quarter betting towards Ms. Wooden’s actively managed ARK Innovation exchange-traded fund, in keeping with the latest 13F filings with the Securities and Alternate Fee. The filings are a requirement for skilled traders and are due 45 days after the tip of the quarter.
Among the many largest naysayers was Michael Burry, the pathology-resident-turned-hedge-fund supervisor whose success in calling the housing market’s collapse was made well-known by Christian Bale in the 2015 film “The Big Short.” As of the tip of June, Mr. Burry’s Scion Asset Administration held bearish put choices value practically $31 million towards 235,500 shares of the ARK Innovation ETF.
Put choices, which give traders the correct to promote shares at a sure worth, sometimes ship earnings to traders when the inventory or fund they’re betting towards declines in worth.
A number of different funds that beforehand hadn’t guess towards the ARK fund took on new positions towards it within the second quarter, filings present. Laurion Capital Administration held roughly $171 million value of put choices towards 1.3 million shares of the ARK Innovation ETF. GoldenTree Asset Administration, Moore Capital Administration and Cormorant Asset Administration additionally held sizable bearish positions on Ms. Wooden’s fund.
https://www.wsj.com/articles/big-short-investor-michael-burry-other-hedge-funds-bet-against-cathie-woods-ark-innovation-etf-11629227796?mod=rss_markets_main | ‘Large Brief’ Investor Michael Burry, Different Hedge Funds Wager Towards Cathie Wooden’s ARK Innovation ETF