michael burry bets against cathie wood.tor made famous by big short takes same at one of wall street's hottest stars. michael burry's firm has disclosed against ark innovation etf. joining us now is tom metcalf. thank you for joining us. what did we hear from some of the big names like michael burry? >> yes, it is always fascinating. it is a bit of insight. very secretive. some of their investments around this time. stanley drunken miller, it looks like what he is doing is hedging his bets on the pandemic recovery, so a couple of names that you will hear that you might recognize, he bought into marriott international and boosted holdings in expedia, starbucks. clearly, a very clear theme of jump on what he expects to be recovery from lockdown. but then, interestingly, he did exit a very large stake he took in citigroup, some may be hedging his bets a little bit to make sure it is not all stuck on the u.s. economy. that is the main one that jumped out to me. mark: good morning. apart from those filings, from the other filing

we don't know for sure yet >> it's after the fact we know it's not just michael burry. there's a bunch of other companies like moore capital management, golden tree asset. the list goes on they're all taking these bearish positions against ark, not necessarily against kathy wood they're arguing it's against the fundamentals, all the companies in her basket are too overvalued a lot of people have shorted tesla. the big concern too to compare the chart just to the s&p 500 year-to-date, ark isn't doing so well the s&p 500 is up 18%, something like that. so, that's a concern but i'll end with this if you guys read the big short, michael burry in the book highlighted for a year or a year and a half before the financial crisis how his investors wanted to jump ship they wanted him to sell and get out of the positions he stuck with it kathy wood's having a bad time right now and we're so quick to forget because her ark did very well last year >> dom, that's the question for burry. i suppose if we could ask him, we would say did you just take advantage of the runup that you saw

shoppers headed back into stories and highflying kathy woods trading barbs with a short investor michael burryll tell you is on the right side of the trade, my colleagues ben levisohn, carlson english and alex, despite the trade the market did in down slightly was a something the feds did? >> it actually was there was a lot of concerns about tapering and this is despite the fact that it was telegraphed the tapering starts soon and we got minutes from the meeting and we had to talk about tapering and it didn't bother the market at all. what it seems if you look at the taper tantrum from 2013 the market fell express and in the s&p finished more than 30% that year, the taper tantrum even if we were to get a real one really wasn't that bad it was a buying opportunity back then. >> is there any different than market that has seen because were so used to going up what else are investors hooked on. >> there is concern about afghanistan and what impact it might have on the stimulus package, the economic data also covid with the case is still increasing. in the economic part of it might be the most wor

the floor show, about to take sides between hedge fund star michael burry and investments guru cathie wood and the ceo of one of cathie wood's favorites unity software is here, if video game sales went through the roof during the pandemic, they are skyrocketing into orbit right now, how the platform for game developers, yeah, unity, plans to grow as people return to work and school, and some of it doesn't even have to do with video games. let us get to this breaking news at the very top here we go it's 11:30 p.m. in afghanistan, and u.s. commanders have apparently regained control of at least the evacuations out of the international airport in kabul, where tens of thousands of people, including american citizens, have swarmed the terminals desperate to get out you've got c-17 cargo planes stuffed with passengers they are taking off under the watchful eye of military in america who remain in contact with taliban members who are still outside the airport. the state department says it expects to evacuate between five and 9,000 people per day, and the revels who over through the afghan go

>> i'm going michael burry, no pain no gain, of course that's p ayne. go up but at 120 times forward earnings it's like the dot com part two on steroids so i think all these stocks are completely overvalued like gary just said there's a lot of over valuation. we know how the tech bubble bursts we'll see a lot of the same. charles: real quick, gary i got 10 seconds, nvidia after the close, are you in either of them? >> i am not. i think in a bear market hood is down 50%, nvidia great company but i have no clue what's going to happen after the toss of a coin. charles: yeah, yeah, i have nvidia from a long time ago but it is so extraordinarily volatile. my brother from another mother great seeing you both always great information and the market which is sideways even after we digest the fomc minutes so what's going on i have a feeling liz claman will help us out? liz? liz: i don't know, charles you've got to look at the skies above the federal reserve in d.c. we got fed hawks dive bombing the fed doves as we kickoff this final hour of trade sending markets

a better network every single day. >>> welcome back ark invest's cathio wood is firing back at michael burry after the big short investor wet against her flagship ark innovation etf christina parts nev los is here. >> wood is the star fund manager running ark investments while burry is known for his hole shorting housing bonds prior to the financial crisis in 2008 he's also played by christian bale in "the big short." in a filing release monday burry disclosed a $31 million position against wood's benchmark fund ark. ark has $23 billion in investments. its biggest holding is tesla followed by teledoc and roku and on top of going after ark directly, burry also revealed that he was betting against tesla to the tune of $731 million. wood took to twitter to defend her fund's investment strategy saying, "i do not believe that he understands the fundamentals that are creating explosive growth and investment opportunities in the innovation space. but burry isn't the only one betting the price of ark will fall bears are circling the volume of put options traded on the etf, which means the right to s

we covered michael burry covering this one money dies. well in this article farewell to bourgeois kings. the author, tings, cord, he refers to call schmidt, who wrote in 1923, the year of the hyper inflation and germany. and this guy was in germany. he knows that every ruling class throughout history advances various claims about his own legitimacy. without which a stable political order is impossible, legitimate in claims can take many different forms and may change over time. but once they become exhausted or lose their credibility, that is pretty much it. she was talking about the times of the kings. and once the king can no longer the monarchy of the divine rights could no longer be maintain, the people didn't believe it any more. they went for the life of napoleon and said, right, like once there was a new way of running things and they didn't believe in the old way running things, there was no way to get that legitimacy back. and he's positing that were the moment and terrible is the end of the meritocracy. the reign of meritocracy.

we covered michael burry covering this one money dies. well in this article farewell to bourgeois kings. the author, tings, cord, he refers to call schmidt, who wrote in 1923, a year of the hyper inflation and germany. and this guy was in germany. he knows that every ruling class throughout history advances various claims about his own legitimacy. without which a stable political order is impossible, legitimate in claims can take many different forms and may change over time. but once they become exhausted or lose their credibility, that is pretty much it. she was talking about the times of the kings. and once the king can no longer the monarchy of the divine rights could no longer be maintain, the people didn't believe it any more. they went for the life of napoleon and said, right, they, once there was a new way of running things and they didn't believe in the old way running things, there was no way to get that legitimacy back. and he's positing that were the moment and terrible is the end of the meritocracy. the reign of meritocracy.

she rebutted investor michael burry.s she doesn't believe bury understands investment opportunities in the innovation space. >> china has made it a priority to invest in innovation. i'm wondering if something is changing there though. since november, every month there has been some new form of increased regulatory oversight crackdowns, social engineering, nationalizing the education companies. seems like that could be contradictory to their desire to become one of the most innovative countries in the world. >> global news 24 hours a day on air and on quick take powered by more than 2700 journal estes and analysts in more than 120 countries. this is bloombergs. dani: come up, goldman sachs and morgan stanley find some common ground on stricter covidry strekses. this is bloomberg. ♪ manus: it is day daybreak europe. i'm manus cranny. the riefls, goldman sachs, morgan stanley. suddenly have something to agree about. dani? dani: yep. they are agreeing on more strin jept precautions for staff returning to offices. across town

haidi: i am watching michael burry betting against kathy woods.e are seeing in these filings that psion asset management has bearish contracts against 235 and 500 shares of the ark innovation etf at the end of the second quarter, according to regulatory filings. that position valued at almost $31 million, so it is a pretty big bet against cathie wood. sophie: burry warning about evaluation levels being unsustainable for months, so it is not surprising. he has been betting against w ood by having bearish wagers against tesla. he has increased those wagers against tesla with puts on a million tesla shares. shery: this is one of arkk's top picks and biggest holdings. michael burry perhaps has good reason to be bearish. we are getting more on tesla in a moment. the u.s. is stepping up scrutiny on its autopilot system and launching a formal investigation that covers more than 750,000 tesla vehicles. details next. this is bloomberg. ♪ haidi: the u.s. has opened an investigation into tesla's autopilot system after almost a dozen crashes. they stepped up

something interesting happening at the same time, you see michael burry having too short positions againstfund but also shorting tesla. there is a lot going on at the same time against all of these trades. these two mega money managers fighting each other on valuations versus understanding innovation. as far as cathie wood's stance on china, you see it in the filings. a lot of hedge funds following her out of china but there is a lot of exposure out there. matt: she gave michael props on his house and call but says he doesn't understand what he is talking about when it comes to innovation and growth. >> she has defended all of these bets over the longer-term, so what will stick in the portfolio over the next five years is worth watching. it is interesting, the reversal of her call on china. she acknowledged that china was ahead in many innovations in financial services. something else happening in the market is the big bet on the banks. sofi was one of the most bought. matt: always bring us the best interviews. sonali basak. for greg pennell, i am matt miller. this is bloomberg. ♪ bloomber

we'll discuss it and the big shorts michael burry revealing against cathie wood. you saidthose who are nitpicking on walmart at least are involved in a farce. >> i was looking for a number that was dramatically lower than this on almost every single one. including gross margins. when the stock comes out, the report comes out, the stock merely dives what's interesting is that it's down the com store sales are not a big blowout. they're a gigantic blowout what happens people who first -- really have to explain this to people. a lot of things are determined by the futures but also determined by europe when europe closed yesterday we rallied. europe, i think, is more of an epicenter of problems than the uk with any -- with traditional. i expected home depot to do better and home depot looks like, wait a second, that was a great thing that it had going and maybe we're done maybe the fantastic numbers that we expected are finished home depot is doing -- 5.61 is the estimate so we can say that's a dramatic slowdown i would just tend to say that it's not as good as others

they've got a lot of big voices talking about, like, michael burry shorting ark investment, and othersg that china is now completely un-investable. sonali: that is true. a big hedge fund manager, and so many of these hedge funds you saw get out in july. alibaba was one of the biggest stocks sold by the hedge fund industry. i've got to say, why would you see this longer-term trajectory of selling, you see some divergence as well. i want to point to jd.com, for example, which during the second quarter, had a lot of big names coming into it like viking, like the one that's like d1, like melvin capital. there seems to be a question about whether they stay after the second quarter. are there values to be found in china, even with these broader headwinds that? but up until now, that is one area where china in general, longer-term investment values for the companies that have been highflying for so long, you are seeing a true reversal in something that could last if not months, years. guy: one of the other things hedge funds have been doing his frontrunning delta trade. they saw it coming. we

cathie took to twitter to respond to the story writing in part, quote, i do not believe that he, michael burrydamentals that are creating explosive growth and investment opportunities in the innovation space. worth noting, carl, the filing also revealed that burry you said his short position in tesla with put options there worth about, sr. 730 million. >> we definitely pay attention to burry trades, dee >>> speak of etfs with leslie picker is looking at tech stocks and fund managers including the drawdown in spacs. >> hey, carl a lot of movement as far as tech goes, spacss go, lots of fund managering paring back a special purpose acquisition vehicle. more on that deal in a moment. he dissolved small stakes in several others he had recently acquired david i einhorn pard back exposure to spaks all of which were small diversified stakes as well kor vax had a sprinkle of spac soltd out oh alt mayor hudson executive acquisition corp. and vd acquisition corp. all of which merged with the targets during the question. trlg global boosting stakes in zoom, zoor dash wsh peloton and shop pie appear loosa

that said, you have a fascinating sort of push me pull you right now with her on one side and michael burryant investor, making bets against the ark etf. i am with jeff mills on this one. i think draft kkings, if you hae a horizon of more than the next six minutes, i think draftkings is really interesting at these levels >> tim, a slate of the top holdings in ark invest have significant percentages off their 52-week highs. any of them you would scoop up >> one that's interesting to me that i've owned in much bigger size, still hold it and actually like the chart is square you've actually consolidated 220 to 265, but the story around the cash app is extraordinary. we have talked about the different elements of where basically jack dorsey has tied people on to this platform and this is a platform that is executing and giving access and leapfrogging technology and moving around the world and doing it so there's loyalty on the consumer side. enormous loyalty on the business side and this is a fintech play that we think is showing the way of many, the money center banks that may need to follow.

i also know this michael burry short of the ark innovation fund is interesting just sort of in the context, i think joe you were going there of the higher valuation stocks a lot of names that rode the wave of the pandemic and kind of the -- i don't know, the unknown of where the overall market is going, whether the valuations are just too rich given the environment, and the only case that people generally making is that, well, valuations deserve to be where they're at because interest rates are so low. and earnings are going to hang in there on that note i come back to you, steph. and forgive me for cutting you off earlier. i wanted to get the roblox in to get the theme out. but it's yours. >> i was just going to make mention, joe was -- i think he responded on the consumer. but on the street industrial part of the economy that's pretty much humaning industrial production beat today. and that didn't get attention. inventories are at five and-year lows repliesing power galore. you listen to the companies and they're humming. the biggest problem is supply chain. that's a problem for every si

michael burry bought million of dollars worth of puts in cathie wood's art fund and she replied thatjoining me michelle schneider. michelle you're one of the smartest investors i know. you do understand innovation so whose going to win this battle? >> well thank you, charles. that's very kind. well it's an interesting battle, because there are two giants and in some ways, they are mirror images of each other in that they're both fiercely passionate about pair way they see the world and how they view the trends as we know, was very wrong for a long time before he hailed victorious after the mortgage debacle and kathy has made a fortune in tesla, which of course has been very negative on so i think the bottom line is this. i look through their portfolios and they also are mirror images where bari is very long in consumer staples and in materials, cathie wood has none of that. she's all in the innovative caltech so basically, i think they can both be right, depending on the timeframe so the way i see it right now, market corrects, burry will be victorious. charles: well, you're coming o

and the big short investor michael burry is betting against cathie wood's innovation etf a short position via options against that fund or etf you can read more about this story at cnbc.com/pro. >> all right, tyler, thank you ahead on "power lunch" the nuns are showing it, the fed is talking about it inflation pricing pressures about to maybe get even worse with the delta variant now shutting down ports in places like china once again. all this week we're looking at a different sector each day to see which stocks in the group are best positioned to deal with cost pressures today we focus on consumer d 'lte y anwel llou about that trade right after this -well, audrey's expecting... -twins! grandparents! we want to put money aside for them, so...change in plans. alright, let's see what we can adjust. ♪♪ we'd be closer to the twins. change in plans. okay. mom, are you painting again? you could sell these. lemme guess, change in plans? at fidelity, a change in plans is always part of the plan. >>> the oil market is closing for the day and let's go to pippa stevens at the cnbc commodity desk h

interesting reporting over the weekend about michael burry.treasuries. tell us about what he is doing with his strategy. >> good morning. i think his trade is logical, left brain thinking if you ask me. u.s. economy is likely to expand to than 6%. next year will not be too shabby either. 4% plus. despite the variant, those are good growth numbers and i would take them any day. given that, you would expect nominal rates to be higher. however, we saw that has not happened since the start of the second quarter. the question comes down to timing, his timing. the market -- let's see -- he has bought into them in the form of options as opposed to treasuries. and that is a big question for may come the timing. anna: it is not that you disagree with what he is trying to do, you just think it is difficult to time it right? >> exactly. since the end of the first quarter, one could argue that the rates need to go up. a lot of people at that point were saying that treasuries will triple. you would expect that to be logical thinking given where the economi

we have michael burry also bearish on treasuries. level bonds continued to advance and we see u.s. yield in negative territory. shery: let's turn to some other first would headlines with su keenan. su: we start with singapore, which is looking to add more countries to its vaccinated traveling program and has signaled that it is committed to reopening. after allowing vaccinated visitors from germany from next month, the minister of transport says it will work on extending eligible countries. >> the intention is to do this well so that we can scale up. this is a critical process, to make sure all parties understand what is required, including the travelers, and they are able to meet the requirements. su: to taiwan, which is administering its first locally developed covid-19 vaccine starting monday. the president will be among the first to get the shot, developed by a tai-based medicine company. the shot has been granted emergency use authorization. taiwan has been struggling to secure sufficient supply of the major international shots. president biden says he may extend the august 31

and bonds appreciating and rallying since march, she talked about michael bury, to his credit michael burryovation space. stuart: she doesn't believe the man who called out the financial press understands the fundamentals. >> of 2021 and innovation. maybe the mortgage-backed security market. stuart: that is a fight to have. tick-tock partnering with the music streaming service which which one and why do i care? >> crypto streamer allows shares on tick-tock. hard to talk about social media because i can see -- stuart: what is a crypto streamer? >> paved by crypto so you know what streaming is? spot ify, it is a growing expanding platform, 1 million in january, 5 million daily users compared to spotify if you want to bet on growth instead. stuart: i know what streaming is even if i don't use it. this just coming at us, the tower and reportedly beating people as they head to the airport, state department contractor says taliban fighters established checkpoints warning people not to leave the country and going through neighborhoods working with people who worked with the us government. moments