Okay, let's get this straight. Michael Burry, the guy who made a fortune betting against the housing market, is now shorting Nvidia and Palantir? Seriously? Is this genius-level contrarianism or just plain old losing-your-touch territory? Because those two stocks have been on a freakin' rocket ship this year. Nvidia's up 54%, and Palantir? Try a staggering 174%. You’d have to be actively trying to lose money to bet against that kind of momentum, right?
So, Burry's Scion Asset Management drops its Q3 13F, and it's a doozy. Big put options against NVDA and PLTR. Fine. He's hedging. Except, he also closed out all his call options from the previous quarter, including Lululemon, Meta, ASML, and Alibaba. What the hell, man? He's not just hedging; he's actively betting against some of the biggest names in tech. Is he seeing something we're not, or is he finally gone full-on Cassandra, screaming about a doom that never comes?
And then it gets weirder. He doubled his Lululemon stock. Okay, so maybe he thinks people will still be buying overpriced yoga pants when the apocalypse hits. I don't know. Maybe they will. He also bought into SLM Corporation and Molina Healthcare Inc. Defensive plays? Sure. But also… kind of boring. It's like he's given up on making big, splashy bets and is now just trying to eke out a few percentage points while the world burns.
But wait, there's more! He opened call option positions in Halliburton and Pfizer. Halliburton? Seriously? Is he betting on a resurgence in oil drilling? And Pfizer? Maybe he thinks another pandemic is around the corner. Or maybe he just likes the dividend yield. I honestly can't tell anymore.
It's like watching a once-brilliant chess player start making random moves. You keep waiting for the grand strategy to reveal itself, but it never does. You start to wonder if they've just forgotten how to play the game.
Speaking of games, I went to a comic book convention last weekend and some dude tried to sell me a "rare" Beanie Baby for $500. I swear, the level of delusion out there is just...astounding. I swear it's this kind of delusion that makes me question the market sometimes. But I digress.
Burry's history is what makes this so intriguing. The guy called the housing crisis when everyone else was partying like it was 1999. He made a fortune doing it, and he cemented his status as a market guru. But that was then. What has he done since? Has he consistently been right? Or has he just been lucky?
The portfolio reshuffling supposedly highlights a renewed tilt toward defensive sectors. Okay, fine. But is that because he's genuinely worried about a market crash, or is it because he's just getting old and risk-averse? Or maybe he just wants to be able to say "I told you so" when (or if) the market finally corrects.
Then again, maybe I'm missing something. Maybe Burry sees a fundamental flaw in Nvidia and Palantir that everyone else is ignoring. Maybe he's right, and we're all about to get screwed. But honestly, at this point, I'm starting to think the guy is just throwing darts at a board and hoping something sticks. According to Michael Burry’s Scion Asset Management Bets Against Nvidia and Palantir - Quiver Quantitative, Burry's Scion Asset Management is indeed betting against Nvidia and Palantir.
Look, I've always admired Burry's willingness to go against the grain. But there's a difference between being a contrarian and being a crank. And right now, I'm not sure which one he is. It feels like he is trying to find the next big short...but is there one? Maybe things are just too unpredictable right now. Or maybe, just maybe, he's lost his edge.
If Burry's right, we're all screwed. If he's wrong, well, he's just another rich guy who made a bad bet. Either way, I'm not losing any sleep over it. I've got bills to pay, and worrying about Michael Burry's portfolio ain't gonna help me do that.
