- Michael Burry, renowned fund manager and the subject of the book and film “The Big Short,” has reportedly taken large short positions against the S&P 500 and Nasdaq 100 indices.
- Burry’s investment firm, Scion Asset Management, purchased put options against the Invesco QQQ Trust ETF and the SDPR S&P 500 ETF during the last quarter, valued at $739 million and $886 million respectively.
- Records also indicate that Burry has exited positions in Chinese e-commerce companies JD.com and Alibaba, as well as PacWest and Western Alliance, while increasing his positions in RealReal, iHeartMedia, HanesBrands, and Warner Bros Discovery.
Michael Burry, famed for his prediction of the 2008 financial crisis, has taken significant short positions against major indices, while also adjusting his portfolio in various companies, according to recent records.
Michael Burry’s Bold Short Positions
Michael Burry, the fund manager who gained fame for his accurate prediction of the 2008 financial crisis, has reportedly taken large short positions against two major indices. According to records released on Monday, Burry’s investment firm, Scion Asset Management, purchased put options against the Invesco QQQ Trust ETF and the SDPR S&P 500 ETF during the last quarter. These options, which give the investor the right to sell shares at a fixed price in the future, are profitable when the price of the underlying stock falls.
Potential Hedge or Profit Strategy?
The records of Burry’s positions are from the end of the second quarter, so it’s possible that he may have exited or added to these positions since then. These transactions could also be part of a “hedge” strategy, which is designed to reduce risk. However, given Burry’s history of accurately predicting market downturns, these moves could also be part of a strategy to profit from a potential market decline.
Portfolio Adjustments
Alongside these bold short positions, Burry has also made significant adjustments to his portfolio. Records show that he has exited positions in Chinese e-commerce giants JD.com and Alibaba, as well as in companies like PacWest and Western Alliance. Meanwhile, he has doubled his position in RealReal and increased his stakes in iHeartMedia, HanesBrands, and Warner Bros Discovery.
Conclusion
Michael Burry’s recent moves have once again put him in the spotlight. Whether these are part of a risk reduction strategy or a prediction of a market downturn remains to be seen. However, given his track record, these moves are likely to be closely watched by investors and market analysts alike.
