"Burry's Scion Asset Management hedge fund just bet big on Molina Healthcare ( ) - it seems that Burry has turned his skeptical eye toward the artificial intelligence (AI) sector. In Scion's recently filed 13F filing, the billionaire disclosed substantial put options on two of the leading AI companies: Palantir Technologies ( ) and Nvidia ( NASDAQ:NVDA ). These bets position him to profit if the stocks decline, signaling his doubt in the ongoing AI hype."
"Burry shorted mortgage-backed securities ahead of the 2008 collapse, turning a massive profit for his investors while the broader market cratered. Since then, his track record has been mixed. He correctly anticipated market turmoil in early 2020 but has also made bearish bets that didn't pan out, such as warnings about overvalued tech stocks during bull runs. Burry has been vocal on social media, often posting cryptic messages about market bubbles and economic risks."
"In the third quarter, Scion allocated roughly 80% of its $1.1 billion notional portfolio value to these put options. The largest position is in Palantir, with puts covering about 5 million shares, valued at around $912 million. The Nvidia puts are smaller but still significant, at approximately $186 million. Puts give the holder the right to sell shares at a pred"
Michael Burry placed substantial put options against Palantir Technologies and Nvidia through Scion Asset Management, allocating roughly 80% of a $1.1 billion notional portfolio to those positions. The Palantir put position covers about 5 million shares and is valued near $912 million; the Nvidia puts total about $186 million. Puts provide the right to sell shares and profit if stock prices fall. Burry previously profited by shorting mortgage-backed securities before the 2008 collapse and has a mixed track record since, including correct calls in early 2020 and unsuccessful bearish bets. The positions reflect skepticism toward current AI sector valuations.
Read at 24/7 Wall St.
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