'Big Short' Michael Burry bets against S&P 500 and Nasdaq

investmentweek.co.uk:

The Scion chief has become infamous for his warnings about market collapse, having posted a one-word tweet of ‘Sell’ in January of this year. Credit: Wiki Commons

Burry, who famously shorted mortgage securities in the run up to the Global Financial Crisis, has bought put options with a value of $886.6m against the SPDR S&P 500 ETF through his Scion Asset Management fund.

Additionally, he purchased $738.8m in puts against the Invesco QQQ Trust ETF, which tracks the Nasdaq 100, the filings revealed.

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This $1.6bn bet means that Burry currently has 93% of his portfolio positioned against the market.

The largest long positions in his portfolio include $10.9m in Expedia, $9.2m in telecoms company Charter Communications and $8.2m in power company Generac.

Since last quarter, the filings also revealed that Burry had closed his positions in various US banks, such as Western Alliance and First Republic, after betting on them in Q1 following the regional banking crisis.

Other departures from the portfolio included Chinese internet giants Alibaba and JD.com.

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The only positions to survive the quarter were the Geo Group, Liberty Latin America, New York Community Bancorp, Signet Jewelers, Cigna Group,and The RealReal.

The Scion chief has become infamous for his warnings of market collapse, having tweeted a single word in January of this year: «Sell»

However, in March he admitted he was «wrong to say sell» and has since gone quiet on social media.

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