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“Big Short” investor Michael Burry’s bearish stock bets earlier are paying off.
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In the second quarter, his management fund Scion held put options on ETFs that track the S&P 500 and Nasdaq.
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Since then, the S&P 500 has fallen about 8%, and the Nasdaq has tumbled 9%.
Michael Burry’s bearish equity bets earlier this year have proven correct as the S&P 500 and Nasdaq have sold off sharply.
His spot-on bets against subprime mortgages were portrayed in “The Big Short” and earned him a massive investor following.
On Friday, the S&P 500 entered correction territory, joining the Nasdaq after it made a similar move earlier this week.
By the end of the second quarter, his management fund Scion held put options on two exchange-traded funds — SPDR S&P 500 and Invesco QQQ — that track the major index funds.
Since then, the S&P 500 has fallen about 8%, and the Nasdaq has tumbled 9%.
Burry regularly rings the alarm on stocks. In recent years, the Scion chief has warned of a massive bubble, and once suggested that the S&P 500 would bottom out at around 1,900 points.
But he recently admitted to making a mistake this year. In late January, Burry tweeted the word “sell,” ahead of a bull-market run.
Correction: October 27, 2023 — An earlier version of this story was based on tweets that aren’t affiliated with Burry and references to them have been removed.
Read the original article on Business Insider
