“Big Short” investor Michael Burry backed his market bubble warning with big money.
Burry’s hedge fund, Scion Asset Management, made massive bearish wagers using put options — contracts that profit when share prices fall — on Nvidia and Palantir Technologies, according to a regulatory filing released Monday for the quarter ending September 30.
Scion disclosed a 1 million-share equivalent put on Nvidia valued at about $186.6 million, and a 5 million-share equivalent put on Palantir worth roughly $912 million.
Scion didn’t respond to a request for comment from Business Insider sent outside regular business hours. The filing shows trades from the last quarter, and Scion’s current holdings may differ from the disclosure.
Burry’s wagers came on the back of massive gains in Nvidia — the world’s first $5 trillion company by market cap — and Palantir, thanks to investor euphoria for artificial intelligence.
Nvidia, the AI chip giant and world’s first company to hit a $5 trillion market cap, has jumped 54% this year, extending a three-year surge fueled by demand for AI hardware. The stock closed 2.2% higher on Monday.
Meanwhile, Palantir, the AI-powered data analytics company, has skyrocketed 174% this year amid a boom in AI and defense spending. The stock closed 3.4% higher on Monday, then fell 4.3% in after-hours trading, after it reported earnings.
Scion held no positions in either company during the previous quarter, signaling a pivot in Burry’s portfolio.
The filing came just days after Burry broke a long silence on X with a warning.
“Sometimes, we see bubbles,” he wrote in a post. “Sometimes, there is something to do about it. Sometimes, the only winning move is not to play.”
Burry rose to fame for predicting and profiting from the US housing market crash of 2008. His massive bet against the housing bubble at the time was featured in the book and movie “The Big Short.”
Scion’s latest disclosure lands amid intensifying debate over whether the AI boom has pushed stock valuations into bubble territory as the S&P 500 and Nasdaq 100 indexes surge to record highs.
While Burry is bearish on Nvidia and Palantir, he took call options on oilfield services company Halliburton and pharma giant Pfizer.
In the latest quarter, Scion also held shares in activewear maker Lululemon, scientific instruments maker Bruker, health insurer Molina Healthcare, and lender SLM Corp, also known as Sallie Mae.
Scion held eight positions as of the end of September, down from 15 at the end of June. The firm managed about $155 million as of March, per its latest regulatory filing.
