(Bloomberg) -- Cathie Wood has responded to Monday’s news that famed investor Michael Burry has placed bets against her firm’s flagship fund.
In a Twitter thread on Tuesday, Wood laid out the thinking behind Ark Investment Management’s approach and called out Burry directly.
He made a “great call” in the mortgage market, she said, but she doesn’t believe he understands the fundamentals that are creating “explosive growth and investment opportunities” in the innovation space.
To his credit, Michael Burry made a great call based on fundamentals and recognized the calamity brewing in the housing/mortgage market. I do not believe that he understands the fundamentals that are creating explosive growth and investment opportunities in the innovation space.
— Cathie Wood (@CathieDWood) August 17, 2021
Burry was made famous after his successful bets against mortgage securities during the financial crisis were portrayed in “The Big Short” movie. Wood’s public rebuke followed the revelation in a quarterly filing that Burry’s Scion Asset Management owned bearish put contracts against 235,500 shares of the ARK Innovation ETF (ticker ARKK) at the end of the second quarter.
Ark’s founder argued that the bull market in equities has now broadened beyond the innovative bets she trounced the market with last year, and that sets the stage for another leg up in her picks.
“The equity market is likely to reward disruptive innovation strategies once again when headline inflation breaks and/or fears of recession increase,” she wrote.
--With assistance from Luke McGrath.