Michael Burry’s Strategic Moves: Bets Against Nvidia and Chinese Tech Giants

Renowned investor Michael Burry, famed for his prescient call on the 2008 financial crisis and notably depicted in the film The Big Short, has taken a decisive stance against some of the major players in the tech industry. In a recent quarterly filing with the Securities and Exchange Commission (SEC), Burry’s firm, Scion Asset Management, revealed a series of bearish bets.

Burry’s firm initiated put options against Nvidia Corp. (NASDAQ: NVDA), signaling a bearish outlook on the chip maker’s future. This comes despite Nvidia’s significant gains driven by the artificial intelligence boom, suggesting Burry anticipates a downturn in the company’s stock value.

In addition to Nvidia, Scion has also placed negative put options against several Chinese technology firms, including Alibaba Group (NYSE: BABA), Baidu Inc. (NASDAQ: BIDU), and JD.com. Previously, Scion held long positions in these companies, marking a notable shift in strategy.

Interestingly, the only long position remaining in Scion’s portfolio is its investment in Estée Lauder, a prominent cosmetics company, underscoring a selective approach in maintaining long-term holdings.

The portfolio adjustments were disclosed through Form 13F, a regulatory filing required by the SEC for institutional investment managers overseeing more than $100 million in qualifying securities. While these documents provide a quarterly snapshot of a fund’s positions, they do not offer insights into current transactions or the specific size of option positions.