Michael Burry Bets $1.6 Billion Against Market: ‘Big Short’ Investor Takes Bearish Stance on S&P 500 and Nasdaq

In filings with securities authorities launched on Monday, famend hedge fund supervisor Michael Burry, whose exploits had been famously captured within the movie “The Big Short,” took a bearish stance in the marketplace. Burry’s Scion Asset Management shorted the S&P 500 and Nasdaq 100 for the shut of the second quarter, wagering roughly $1.6 billion on an impending inventory market collapse.

A New ‘Big Short’? Michael Burry Wagers $1.6 Billion Against QQQ and SPY

Michael Burry seems to be taking a bearish stance on Wall Street as soon as extra, with Scion Asset Management’s newest Securities and Exchange Commission (SEC) 13F filing revealing a considerable acquisition of put choices in opposition to Invesco QQQ ETF (NASDAQ: QQQ) and SPDR S&P 500 ETF Trust (NYSEARCA: SPY). These choices have a notional worth of $1.62 billion, comprising a staggering 93% of Scion’s disclosed belongings.

Of this substantial wager, $738.8 million has been positioned in opposition to QQQ, whereas $886.6 million targets SPY. Despite the S&P 500 and Nasdaq 100 performing robustly to this point in 2023, the specifics of Burry’s filings, resembling buy costs and expiration dates, stay hid. Given Burry’s profitable bets through the 2008 monetary disaster, his market strikes are intently watched. Yet in a shocking flip, Burry shifted from a selling stance in January 2023 to admitting he was mistaken by April.

He overtly acknowledged his error in advising gross sales, even extending congratulations to the “BTFD generation.” Alongside these daring strikes, Scion’s newest submitting reveals lengthy positions in corporations resembling Stellantis, Discovery, Expedia, CVS, MGM Resorts, Iheartmedia, and Cigna. It was round this identical time final 12 months, in August 2022, when Burry started to predict a multi-year recession within the United States, adopting a extra bearish outlook.

In March, Burry likened three main financial institution collapses to the Panic of 1907, and the newest SEC filings point out that Scion eradicated publicity to Western Alliance Bancorp and Pacwest. As August 2023 progresses, each the S&P 500 and Nasdaq 100 have retreated in opposition to the U.S. greenback, shedding 2% to three% respectively this month. The 13F submitting moreover reveals that Scion has divested its holdings in Alibaba Group and JD.com.

What do you concentrate on Michael Burry’s brief bets? Share your ideas and opinions about this topic within the feedback part under.