‘The Big Short’ investor Michael Burry sold virtually all of its US stocks last quarter – but added 3 new positions

Michael Burry big card
Michael Burry.

  • Michael Burry cut back on its US equities portfolio in the third quarter.
  • “The Big Short” investor has been warning of a devastating market crash for several months.
  • Burry’s Scion fund bought shares in Lockheed Martin, Now and Scynexis.

Michael Burry took a knife to his stock portfolio in the third quarter, cutting it from more than 20 holdings to just six per share. September 30, revealed a filing from the Securities and Exchange Commission on Monday. The sale is in line with his long-standing expectation that the stock market is in a bubble and heading for a historic crash.

Burry’s Scion Asset Management unveiled new ownership interests in defense contractor Lockheed Martin, a specialist in oil drilling equipment Now, and Scynexis, a biotech company. It also reduced its Corecivic and Geo Group positions, meaning that a small stake in CVS Health was the only position intact.

Scion sold all of its other holdings, including the call options it held on Alphabet and Facebook shares, and the bearish put options it owned on Tesla shares and Cathie Woods’ flagship Ark Innovation ETF in late June.

Burry is best known for his billion-dollar bet against the American housing bubble of the mid-2000s, which was immortalized in the book and movie “The Big Short.” The contrarian investor also laid the groundwork for the GameStop card pressure this year when he invested in the video game retailer in 2019.

The fund manager has warned of an epic bubble in asset prices, predicted a historic market crash and rung the inflation alert for several months now. He has built up a devoted following of fans thanks to his gloomy forecasts and habit of hiding stock tickers in his tweets.

Most recently, he accused Tesla CEO Elon Musk of selling shares not to raise cash or pay taxes, but to capitalize on his electric car company’s 12-fold gain in valuation since the beginning of last year.

Read more: The founder of a Michael Burry subreddit explains the unique appeal of ‘The Big Short’ investor – and reveals the shares hidden in his tweets

Leave a Comment