Investor Michael Burry of “The Big Short” fame exited his bearish bets on Tesla Inc. TSLA and Cathie Wood’s ARK Innovation ETF ARKK in the third quarter, according to a regulatory filing on Monday.
What Happened: Burry’s private investment firm Scion Asset Management LLC has reduced its holdings from more than 20 companies previously to just six companies as at the end of September, as per the filing with the Securities and Exchange Commission.
Scion has exited positions in all the other companies it held previously. This includes exiting bearish put options on almost 1.1 million Tesla shares and on 235,500 shares of Ark Innovation ETF.
A put option gives an investor the right to sell a stock at a certain price in the future.
Scion has also exited the call options on 91,900 shares of Alphabet Inc. GOOG GOOGL and 941,200 Facebook Inc. FB stock as at the end of June.
Further, Burry said in a now deleted tweet that he has never shorted any cryptocurrency, but warned that the current bubble is bigger than the dot-com or housing bubbles. He also hinted he is betting against long-term U.S. Treasuries.
Why It Matters: Burry is a former hedge fund manager who gained notoriety on Wall Street by predicting and profiting from the 2008 financial crisis. He was depicted by Christian Bale in “The Big Short” movie in 2015.
Burry said in December last year that he was shorting Tesla stock. However, the famed investor said last month that he is no longer betting against Tesla and his position in the electric vehicle maker was only a trade, it was reported, citing CNBC.
Following Burry’s disclosure in August of a $31 million short position in ARK Innovation ETF, Cathie Wood had questioned Burry’s understanding of the innovation space.
Burry’s comments about not shorting cryptocurrencies assume significance since he believes that cryptocurrencies are in a bubble.
Investors had speculated last month that the Burry was short Bitcoin BTC/USD after he asked his Twitter followers “how to short a cryptocurrency” in a tweet that was later deleted.
Price Action: Tesla shares closed 1.9% lower in Monday’s regular trading session at $1013.39, while ARK Innovation ETF shares closed 0.8% lower at $117.53.
Read Next: Elon Musk Sells Another $950M Worth Of Tesla Stock On Monday
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