Latest news with #Burry
Yahoo
4 days ago
- Business
- Yahoo
Is The Bull Run Over For Nvidia– 'The Big Short' Investor Michael Burry Taking Up Short Positions
Investors have followed Michael Burry's trades ever since he predicted the financial crisis of 2008 and profited from it by taking up short positions. The man still known to many as "The Big Short" investor is making headlines for his bearish outlook on one of the world's biggest tech stocks. Benzinga examines why Burry has taken short positions on Nvidia (NASDAQ: NVDA). Nvidia shares have spent much of the last 18 months on a bull run powered by AI's emergence as the world's hottest investment sector. As recently as May 2023, Nvidia shares were trading in the $35 range. Then it became clear that Nvidia's graphics processors and chipsets were mission-critical components in AI development, and the company's stock was off to the races. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Invest where it hurts — and help millions heal:. Nvidia shares increased from around $40 in January 2024 to $147.16 by early November. The company's market cap grew to an astonishing $3 trillion, and CEO Jensen Huang achieved near celebrity status as his company gate-crashed the S&P 500 Magnificent Seven. That kind of explosion in share price and market cap made Nvidia one of the biggest stories of 2024, but Burry knows what goes up must come down. Barchart is reporting that Burry's Scion Asset Management has numerous put options in Nvidia. Beyond that, the water gets a little murky in terms of predicting Burry's long game. Barchart compiled the option data from Scion's March 13F filings, but those filings include multiple shorts. Scion is also betting against Alibaba (NYSE: BABA), Baidu, and (NASDAQ: TRIP). The filings only note that the combined total of Scion's shorts is $199 million. Trending: Maximize saving for your retirement and cut down on taxes: . There is no information about expiration dates or strike prices, and the filings don't disclose whether Scion has long positions on Nvidia or the other stocks it's shorting. All this makes it difficult to decipher whether Burry has completely soured on Nvidia. President Donald Trump's tariffs have rattled multiple economic sectors, especially tech and retail, where Nvidia and Alibaba operate. Like many tech companies, Nvidia is heavily dependent on Chinese components, and jitters over the tariffs saw its shares slump to the $90 range in late March. Trump is still negotiating with China, and Nvidia has rebounded to $135.50 per share. The next shoe to drop will be quarterly earnings, which Burry may be expecting to fall short of the pressing question for investors is whether Burry is simply hedging with these short bets or believes Nvidia is overpriced and due for a correction. He has a proven knack for getting out of high-performing positions before the bottom drops, and these shorts could be part of that trend. However, the fact that Burry and Scion have $199 million in shorts spread across multiple positions may indicate that Burry is guarding against the downside. With that said, Burry shorting Nvidia should give investors cause to assess their long-term positions and goals with this stock. In the meantime, keep your eyes peeled for Nvidia's earnings report and news on the tariff negotiations. Both of those will have a significant impact on Burry's next moves with Nvidia. Read Next: Here's what Americans think you need to be considered wealthy. Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Is The Bull Run Over For Nvidia– 'The Big Short' Investor Michael Burry Taking Up Short Positions originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
21-05-2025
- Business
- Yahoo
After Nearly Dumping His Entire Portfolio and Buying Puts on Nvidia, Did Famed Investor Michael Burry Just Pull Off Another "Big Short?" It Certainly Looks That Way.
Michael Burry's massively successful bet against the U.S. housing market before it collapsed during the Great Recession made him famous. Burry may have made another successful "big short" bet right before the tariff drama hit. The big question now is whether Burry bought the dip or is still bearish on the market this year. These 10 stocks could mint the next wave of millionaires › If you've seen the movie The Big Short, which is based on the novel by Michael Lewis and features acclaimed actors Steve Carrell, Christian Bale, Ryan Gosling, and Jeremy Strong, then you probably know who Michael Burry is. The former Stanford neurology resident rose to prominence while posting stock ideas online during the early days of the internet. His ideas were so good that he eventually left the medical field to launch his own fund. Prior to the Great Recession, Burry correctly bet against the housing market, making hundreds of millions in profits for his fund, Scion Capital. Now, Burry runs another fund called Scion Asset Management, which happened to sell nearly all of its stocks in the first quarter, while also buying put options. Did Burry just pull off another "big short" trade? It certainly looks that way. Burry never runs too large of a portfolio, typically holding about a dozen stocks, plus or minus a few. In the first quarter, he sold nearly all of his holdings. He had been quite bullish on China, owning large Chinese stocks like Alibaba, Baidu, and PDD Holdings. But after selling these stocks, he also purchased put options on these names. Put options are similar to call options but in the opposite direction, essentially betting that a stock price will decline. Burry also purchased put options on Nvidia. Now, keep in mind that the 13F filing with the Securities and Exchange Commission only shows us Scion's positions at the close of trading on March 31. We have no idea at what point during the first quarter Burry sold or at what price. However, it's quite possible that Burry saw rising trade tensions between the U.S. and China and decided to get ahead of a potential marketwide sell-off caused by tariffs. If this was the case, then Burry pulled off another "big short" trade and timed it perfectly because the market absolutely collapsed in early April after President Donald Trump's "Liberation Day," falling nearly 20% from highs made in February. Nvidia, at one point this year, traded 30% lower and was down much more from highs made during the year. Nvidia not only got hit by the trade war but also after the Trump administration placed export restrictions on certain semiconductor chips to China. Nvidia does a substantial amount of business in China, but the stock has recovered a lot since the U.S. and China announced a 90-day pause on higher tariff rates against one another. Interestingly, Burry's lone remaining long position is the multinational cosmetics company Estée Lauder, which is down over 50% in the last year (as of May 16). Scion actually doubled its position in the company in the first quarter. It's not uncommon for Burry to take long positions in deep-value stocks like he did with GameStop right before the meme stock blasted into orbit in what turned into an epic retail trading frenzy. We really won't know the answer to this question until we see Scion's 13F for the current quarter sometime in July. However, it's quite possible that Burry was only short-term bearish and saw the trade war coming. Burry has done this before. In the second quarter of 2022, right after the Federal Reserve began its intense interest rate hiking campaign, Scion also sold all of its stocks except one. By the third quarter, Scion had begun accumulating stocks again. It would, of course, be quite impressive if Burry sold all of his stocks in the first quarter and then bought the dip after the market sold off intensely right before Trump announced a pause on elevated tariff rates. I wouldn't put it past the legendary investor. Burry could also be more long-term bearish, as he studies economic data closely, which indicates a potential slowdown in consumer spending and the overall economy. I think the big takeaway is that we don't quite know how Burry is positioned for the rest of the year just yet in terms of being bearish or bullish. However, it definitely looks like Burry pulled off another "big short" trade. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $351,127!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,106!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $642,582!* Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon. See the 3 stocks » *Stock Advisor returns as of May 19, 2025 Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Baidu and Nvidia. The Motley Fool recommends Alibaba Group and The Motley Fool has a disclosure policy. After Nearly Dumping His Entire Portfolio and Buying Puts on Nvidia, Did Famed Investor Michael Burry Just Pull Off Another "Big Short?" It Certainly Looks That Way. was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-05-2025
- Business
- Yahoo
Big Short Investor Michael Burry Bets Big on Market Decline
Hedge fund manager Michael Burry, famous for making millions betting against the mortgage market in 2008, is again counting on a market decline, this time with a focus on chips and China. Burry, whose risky investments were chronicled in the 2015 film The Big Short, purchased millions of dollars in puts that will turn profitable if stocks including Nvidia Corp. (NVDA), Baidu Inc. (BIDU) and others fall in value, according to an SEC filing made last week. The 13F filing summarizes first-quarter investments of $199.2 million and doesn't provide dates or details of the purchases. While Burry made more than $800 million for himself and other investors in 2008, according to published reports, recent investments suggest a mixed record of making money. He appears to have sold a Canadian physical gold ETF before gold soared to record prices this year. In 2023, he closed bets he made against the SPDR S&P 500 ETF Trust (SPY) and the Invesco QQQ Trust (QQQ) that appeared to have not paid off. Still, with President Donald Trump's tariff war raging and Moody's Ratings downgrade of U.S. debt, many experts and investors are cautioning markets remain vulnerable to declines that would make Burry's bets pay off. Besides Nvidia and Baidu, Scion purchases add up to bets against the Chinese internet economy. Burry is short Alibaba Group Holding (BABA), Inc. (JD), PDD Holdings Inc. (PDD) and Group (TCOM). Those stocks appear particularly vulnerable to a downturn amid the tariff war that President Trump is waging against China. The KraneShares CSI China Internet ETF (KWEB), which holds most of those stocks, has gained 14% over the past month. His only long bet is 200,000 shares in Estee Lauder Companies Inc. (EL). While that stock is down 13% this year, it's jumped 20% over the past month. Scion appears to have last held exchange-traded funds in last year's second quarter, when the firm held Japan-focused ETFs including the iShares MSCI Japan ETF (EWJ), along with SPY and QQQ | © Copyright 2025 All rights reserved Sign in to access your portfolio
Fashion Network
19-05-2025
- Business
- Fashion Network
'The Big Short' investor Michael Burry backs Estée Lauder as new CEO targets growth in China and the US
'The Big Short' investor Michael Burry's Scion Asset Management has doubled its stake in Estée Lauder, signaling renewed investor confidence as the beauty giant's new CEO leads a transformation to overcome weak demand in key markets, including North America and China. The U.S. investor, best known for his bets against the housing market ahead of the 2008 financial crisis—portrayed in the film 'The Big Short'—now holds 200,000 shares in Estée Lauder, valued at $13.2 million, according to a regulatory filing published Thursday. This figure represents twice the number of shares Scion held at the end of December 2024. 'Burry's bet suggests belief in Estée Lauder's ability to reclaim its status as a beauty powerhouse in an increasingly competitive global market,' said Angeli Gianchandani, global brand marketing expert at New York University. Since taking over in January, Estée Lauder CEO Stéphane de La Faverie has intensified product launches and introduced new luxury pricing tiers in an effort to reignite consumer interest following multiple quarters of sluggish growth. 'I view this as a positive for Estée Lauder amid the CEO's effort to turn around the business, though the position size of the investment is not very large,' said Dan Su, equity analyst at Morningstar. A recently announced 90-day trade truce between Washington and Beijing has also brought some relief to the company, reducing U.S. tariffs on China from a steep 145% to 30%. The move is expected to ease pressure on global brands with high exposure to the Chinese market. China remains a critical territory for Estée Lauder. The Asia-Pacific region, which includes China, accounted for approximately 31% of the brand's total sales in fiscal 2024. The regulatory filing also revealed that Scion reduced the number of companies in its investment portfolio by about half, bringing the total to just seven. Despite the renewed optimism, Estée Lauder's stock has fallen 15% year-to-date. However, shares gained around 2% on Friday following news of Scion's increased stake. Scion Asset Management did not respond immediately to requests for comment.
Fashion Network
17-05-2025
- Business
- Fashion Network
'The Big Short' investor Michael Burry backs Estée Lauder as new CEO targets growth in China and the US
'The Big Short' investor Michael Burry's Scion Asset Management has doubled its stake in Estée Lauder, signaling renewed investor confidence as the beauty giant's new CEO leads a transformation to overcome weak demand in key markets, including North America and China. The U.S. investor, best known for his bets against the housing market ahead of the 2008 financial crisis—portrayed in the film 'The Big Short'—now holds 200,000 shares in Estée Lauder, valued at $13.2 million, according to a regulatory filing published Thursday. This figure represents twice the number of shares Scion held at the end of December 2024. 'Burry's bet suggests belief in Estée Lauder's ability to reclaim its status as a beauty powerhouse in an increasingly competitive global market,' said Angeli Gianchandani, global brand marketing expert at New York University. Since taking over in January, Estée Lauder CEO Stéphane de La Faverie has intensified product launches and introduced new luxury pricing tiers in an effort to reignite consumer interest following multiple quarters of sluggish growth. 'I view this as a positive for Estée Lauder amid the CEO's effort to turn around the business, though the position size of the investment is not very large,' said Dan Su, equity analyst at Morningstar. A recently announced 90-day trade truce between Washington and Beijing has also brought some relief to the company, reducing U.S. tariffs on China from a steep 145% to 30%. The move is expected to ease pressure on global brands with high exposure to the Chinese market. China remains a critical territory for Estée Lauder. The Asia-Pacific region, which includes China, accounted for approximately 31% of the brand's total sales in fiscal 2024. The regulatory filing also revealed that Scion reduced the number of companies in its investment portfolio by about half, bringing the total to just seven. Despite the renewed optimism, Estée Lauder's stock has fallen 15% year-to-date. However, shares gained around 2% on Friday following news of Scion's increased stake. Scion Asset Management did not respond immediately to requests for comment.
