Michael Burry, the famed investor known for predicting the housing market crash of 2008, has made some notable changes to his portfolio in the second quarter of this year. While he has cut his bets against the S&P 500 and Nasdaq 100, he has taken aim at semiconductor stocks.
Burry’s firm, Scion Asset Management, previously purchased bearish put options on the SPDR S&P 500 and Invesco QQQ. However, according to the latest quarterly filing with the Securities and Exchange Commission, those positions are now gone. Instead, Scion has bought puts on 100,000 shares of Blackrock’s iShares Semiconductor ETF. This move indicates Burry’s skepticism towards the semiconductor industry.
Notably, Nvidia, a leading graphics-chip specialist, is the third-largest holding in the iShares Semiconductor ETF. The company’s stock price has soared this year, largely due to excitement surrounding artificial intelligence. Burry’s bearish bet on the semiconductor ETF reflects his doubts about the sustainability of this rally.
In addition to his semiconductor put options, Burry also made significant changes to his overall portfolio. He reduced the number of positions from 33 to 13, effectively cutting the total value from $111 million to $44 million. This consolidation suggests that Burry is carefully evaluating his investments and making strategic decisions to optimize his portfolio.
Interestingly, Burry made unexpected moves by increasing his stakes in companies like Euronav, Hudson Pacific Properties, Nexstar Media, Safe Bulkers, Star Bulk Carriers, and Stellantis. These investments indicate his confidence in the future prospects of these companies. On the other hand, Burry decided to offload his other positions and trim his bets on Crescent Energy and The Real Real.
Moreover, Burry added Alibaba and Booking.com shares to his portfolio and also purchased puts. This suggests that he sees potential value in the Chinese e-commerce giant and the online travel booking platform while hedging his bets with put options.
Overall, Burry’s recent actions reflect his ever-evolving investment strategy. While he may have ended his bets against the S&P 500 and Nasdaq 100, his new wager against semiconductor stocks indicates his skepticism. As a renowned value investor, Burry’s moves are closely watched by market participants, and his portfolio adjustments may serve as a signal for other investors to reconsider their own positions.
Disclaimer: This article is generated by OpenAI’s language model and should not be considered financial advice. Please do your own research before making any investment decisions.
