Title: Renowned Investor Michael Burry Bets Over $1.6 Billion on Wall Street Crash
Renowned investor Michael Burry, famous for correctly predicting the 2008 housing market collapse, has recently made a massive bet on a Wall Street crash. Burry’s hedge fund, Scion Asset Management, has purchased put options worth more than $1.6 billion aimed at profiting from a potential market downturn.
Specifically, Burry’s fund has allocated $866 million to put options against a fund that tracks the S&P 500 and another $739 million against a fund that follows the Nasdaq 100. This strategic move by Burry indicates that he is using more than 90% of his portfolio to bet against the market.
Although Burry had previously displayed some wavering in his stance, tweeting “sell” in January only to later admit he was wrong, his recent moves suggest a renewed confidence in his bearish predictions. These bets are particularly noteworthy given the significant gains seen by the S&P 500 and Nasdaq 100 this year, with increases of almost 16% and 38%, respectively.
In addition to his bearish bets, Burry’s fund has also made some noteworthy portfolio changes. Scion Asset Management has sold its shares in various regional banks and Chinese stocks, including First Republic Bank, JD.com, and Alibaba. On the other hand, Burry has also expressed optimism in certain sectors, such as travel and healthcare, by increasing exposure to these industries. He has also purchased shares in companies such as Expedia Group, MGM Resorts, CVS, and Cigna.
Burry’s reputation for accurately predicting market trends has led his bearish predictions to garner significant attention in financial circles. Traders who have followed Scion’s disclosed investments over the past three years have achieved impressive annualized returns of 56%, surpassing the 12% return of the S&P 500 over the same period.
With Burry’s substantial bet against a Wall Street crash and his mixed portfolio adjustments, many will be closely monitoring his predictions and whether history will repeat itself. It remains to be seen if his latest moves will yield the same insightful results that made him a household name during the 2008 housing market collapse.