According to Latest Breaking news by 99livenews Michael Burry, the astute investor who gained widespread recognition for accurately predicting the monumental housing market crash in 2008, has once again made waves in financial circles. Burry has recently taken a significant step by placing a substantial bet of more than $1.6 billion on the likelihood of a forthcoming crash in the Wall Street arena. This move echoes his past success and underscores his continued involvement in anticipating market shifts.
Burry is placing bearish bets against S&P 500 and Nasdaq 100, as revealed in SEC filings on Monday. Through Scion Asset Management, he acquired $866 million in put options against an S&P 500 tracking fund and $739 million against a Nasdaq 100 tracking fund.
According to filings, Burry is allocating over 90% of his portfolio to bet on a market decline.
But Burry appears to have been wavering between bullish and bearish on his stock picks this year. In January, he tweeted a cryptic message to his 1.4 million followers. “Sell,” he wrote. But by the end of March, he backtracked. “I was wrong to say sell.” he wrote.
Latest Breaking news: Both the S&P 500 and Nasdaq 100 have recorded substantial gains this year, with increases of approximately 16% and 38% respectively.
In the mid-2000s, Michael Burry garnered significant attention by placing a strategic wager against the housing market. His astute prediction led to substantial profits as he navigated the tumultuous waters of the subprime lending crisis and the subsequent collapse of major financial entities in 2008. Michael Lewis chronicled these events in the acclaimed bestseller “The Big Short: Inside the Doomsday Machine.” Later, this gripping narrative was translated onto the big screen, with Christian Bale stepping into the role of Burry, effectively bringing his story to life for audiences worldwide.
Latest Breaking news Exiting regional banks and divesting from China.
Burry’s fund is in the process of strategically reducing its exposure to regional banks. It recently completed the sale of its 150,000 shares in First Republic Bank (FRC) and also divested holdings in Huntington Bank PacWest (PACW) and Western Alliance (WAL). The timing of these sales in relation to JPMorgan Chase’s First Republic Bank takeover adds complexity to the fund’s strategy.
Latest Breaking news: Burry also changed his stance on Chinese stocks, offloading JD.com (JD) and Alibaba (BABA) shares in Q2.
A little long:
There are some names that Burry and his team at Scion are betting on.
Approximately 6% of the company’s stock portfolio is allocated to long positions. Notably, during the second quarter of the year, he strategically bolstered his involvement in the travel and healthcare sectors. Shares in Expedia, MGM Resorts, CVS, and Cigna suggest Burry’s strategic industry expansion.