Instead, investors bought the dip en masse after several large banks failed this year, ignoring the slow-motion train wreck developing in business credit and real estate credit. Burry likely saw the steadily worsening leading economic indicators that many professional investors are seeing and assumed that investors would quickly agree. Is Burry's trade genius, or is it insane? Burry has a long-time penchant for being early on trades, including his "sell" call early this year preceding his radio silence. With this, Michael Burry appears to be nearly all-in on bets that will profit from a sharp decline in stocks, particularly high-flying tech stocks. Now, new filings show that Burry has raised the stakes on his short bets, buying puts on the S&P 500 ( SPY ) and NASDAQ 100 ( QQQ ) with over $1.6 billion in notional value. Burry had disappeared from public view since April, maintaining radio silence since. Burry Bets Big On Market Crashġ3-F filings for large asset managers came out late yesterday, and Michael Burry's are always among the most interesting. He couldn't do this if he was at the mercy of very short-term market moves, and so he didn't give his investors the ability to remove their money on short notice, as most hedge funds did. His job was to disagree loudly with popular sentiment. "It goes up by 10 times, but first it goes down by half." This isn't the sort of ride most investors enjoy, but it was, Burry thought, the essence of value investing. That was a classic Mike Burry trade," says one of his investors.
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