Scion Asset Management, a hedge fund founded by famed ‘Big Short’ investor Michael Burry, disclosed a new regulatory 13F filing on November 3, revealing several changes to its portfolio.
Most notably, Burry purchased five million put options on Palantir (NASDAQ: PLTR) and one million put options on Nvidia (NASDAQ: NVDA), the former position being valued at around $912 million and the latter at roughly $186 million. In total, 80% of the manager’s $1.38 billion portfolio is now allocated to the two positions.
Scion also made several notable long-side adjustments. Namely, it added 50,000 shares of Lululemon (NASDAQ: LULU) and initiated a 125,000-share stake in Molina Healthcare (NYSE: MOH), worth $17.8 million and $23.9 million, respectively.
Michael Burry’s portfolio. Source: SEC.govLikewise, the firm opened a 480,000-share position in SLM (NASDAQ: SLM) at $13.2 million and purchased 2.5 million call options on Halliburton (NYSE: HAL), estimated at some $61 million, as well as six million call options on Pfizer (NYSE: PFE) exceeding $152 million.
On the other side, Burry fully exited positions in Estée Lauder (NYSE: EL), Regeneron Pharmaceuticals (NASDAQ: REGN), MercadoLibre (NASDAQ: MELI), and UnitedHealth Group (NYSE: UNH).
Michael Burry takes a jab at AI
Alongside the disclosure, Burry took to X to seemingly criticize those enthusiastic about the artificial intelligence (AI) market:
The accompanying charts compare historical cloud growth from 2018 to 2022 at Alphabet (NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), and Microsoft (NASDAQ: MSFT) to today’s environment.
Other graphics highlighted the partnerships between Nvidia, OpenAI, and other tech giants while suggesting that the current capital spending in the sector is reflecting the levels not seen since the Dot-com bubble.
All in all, the filings and the cryptic social media posts suggest that Burry believes the AI trade may be overheating.
The bearish stance is especially noteworthy as it coincides with Palantir’s strong Q3 earnings call on November 3, when the software leader reported $1.18 billion in revenue, up 63% year-over-year.
Disclaimer: The featured image in this article is for illustrative purposes only and may not accurately reflect the true likeness of the individuals depicted.
Source: https://finbold.com/big-short-michael-burrys-stock-portfolio-update/
