Burry, famous for ‘Big Short,’ bought bearish options against S&P, Nasdaq 100

Burry, famous for ‘Big Short,’ bought bearish options against S&P, Nasdaq 100

Michael Burry, the money manager known for his role in “The Big Short,” held bearish options against the S&P 500 and Nasdaq 100 Index at the end of the second quarter, according to securities filings released on Monday. Burry’s Scion Asset Management purchased put options worth $739 million against the Invesco QQQ Trust ETF (QQQ.O) and put options worth $886 million against the SPDR S&P 500 ETF (SPY.P). These put options are typically used to express a bearish or defensive view.

Burry gained fame for his bets against the U.S. housing market before the 2008 financial crisis. The book “The Big Short” by Michael Lewis, released in 2010, and the subsequent movie in 2015 further popularized his story. The recent regulatory filings do not disclose the performance of Burry’s options bets, as they do not require the disclosure of specific details such as strikes, purchase prices, and expiration dates. It is also unclear whether the puts were held outright or as part of a larger trade involving other contracts that may have been sold short.

While the S&P 500 (.SPX) has seen a year-to-date increase of approximately 17% and the Nasdaq 100 (.IXIC) has surged nearly 39%, driven by the outsized gains of companies like Nvidia (NVDA.O) and Meta Platforms (META.O), Burry’s bearish options indicate a different perspective. Additionally, Scion Asset Management liquidated its stakes in Chinese e-commerce company JD.com (9618.HK), Alibaba Group Holdings (9988.HK), and regional banks including PacWest (PACW.O) and Western Alliance Bancorp (WAL.N) that it had previously bet on in the first quarter. The firm also sold its shares of First Republic Bank (FRCB.PK), but it is unclear if this occurred before the company’s collapse on May 1.

On the other hand, Scion Asset Management increased its stake in online luxury goods market RealReal Inc (REAL.O), which has seen a year-to-date increase of nearly 100%. The firm also added new positions in iHeartMedia (IHRT.O), HanesBrands (HBI.N), Warner Bros. Discovery (WBD.O), among others. However, shares of iHeartMedia and HanesBrands have declined by 16% or more this year, while Warner Bros. Discovery has seen a nearly 43% increase.

Scion Asset Management did not provide any comment on these positions. The reported holdings are based on the quarterly filings known as 13-Fs, which reflect the firm’s holdings at the end of the previous quarter and may not represent its current positions. Despite their backward-looking nature, these filings offer insights into the positions of institutional investors like hedge funds.

Burry, known for frequently reshuffling his portfolio, attracted attention last August when he sold all of his long positions and invested in prison company Geo Group Inc (GEO.N). However, he no longer owns shares of the company.

The positions reported in this article were compiled by David Randall and Saqib Iqbal Ahmed in New York and edited by Ira Iosebashvili and Matthew Lewis. The article adheres to the Thomson RushHourDaily Trust Principles.

About News Team

Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

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