IMPORTANT POINTS:
- Michael Burry has closed his positions against the S&P 500 and the Nasdaq 100 in the third quarter.
- Burry has moved his focus toward the semiconductor industry, betting against BlackRock’s semiconductor ETF.
- Scion Capital also reopened positions in JD.com and Alibaba, showing a shift in its investment strategy.
Michael Burry, the investor famous for betting against subprime mortgages in the 2008 financial crisis, has closed his positions against the S&P 500 and the Nasdaq 100 in the third quarter.
This move marks a significant shift in its investment strategy, as it has also identified a new industry to bet against: semiconductors.
Burry and the stock market
Burry’s hedge fund, Scion Capital, disclosed Tuesday in a federal filing with the SEC that it had closed “put” positions in the SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ), which tracks the index. Nasdaq 100, at the end of September.
These bearish bets amounted to more than $1.6 billion as of the last trading day of the second quarter. The indices fell 3.6% and 3%, respectively, during the third quarter.
New bets from Scion Capital
Scion Capital greatly reduced its exposure to the stock market in the third quarter, according to its new SEC filing, selling 76% of the shares it had disclosed at the end of the second quarter.
However, Scion reopened positions in JD.com and Chinese tech giant Alibaba (BABA) after selling these companies in the second quarter. The fund also eliminated its remaining exposure to regional lender New York Community Bank (NYCB).
Burry’s Current Positions
Burry isn’t done betting against stocks. Scion opened two new positions: one betting against 100,000 shares of BlackRock’s semiconductor ETF, the iShares Semiconductor ETF (SOXX), and another of 2,500 shares betting against online travel website Booking Holdings Inc. (BKNG). In addition, the firm also purchased 1,500 shares of Booking Holdings Inc.
