Michael Burry’s Scion Asset Management scoops up shares of Alphabet, Amazon
- Thread starter ajacobson
- Start date
(Bloomberg) - yesterday
Burry’s bets
Michael Burry has added to bets on Chinese tech giants Alibaba and JD.com in recent months, even amid the deepening rout in Chinese stocks. Alibaba is now the top holding at Scion Asset Management, with JD.com second. Burry, the money manager made famous by The Big Short, also bailed on a wager against chip firms like Nvidia and built positions across a variety of stocks in the health, software and banking sectors. In China’s battered market, meanwhile, some traders are taking a “lottery ticket” bet that a recovery will eventually materialize.
Burry’s bets
Michael Burry has added to bets on Chinese tech giants Alibaba and JD.com in recent months, even amid the deepening rout in Chinese stocks. Alibaba is now the top holding at Scion Asset Management, with JD.com second. Burry, the money manager made famous by The Big Short, also bailed on a wager against chip firms like Nvidia and built positions across a variety of stocks in the health, software and banking sectors. In China’s battered market, meanwhile, some traders are taking a “lottery ticket” bet that a recovery will eventually materialize.
The guy made one big trade 16 years ago.
Why does anyone follow him? He’s been so wrong for the last 5-6 years at least.
Why does anyone follow him? He’s been so wrong for the last 5-6 years at least.
The thing I am surprised about with Burry is:
How did he forget you need two pieces to go short:
1) A company that is overvalued
2) Knowledge of some forcing item that will cause the market to re-evaluate the price of the above
Without the second, you can be right about the first and still lose your shirt.
That's why you see guys like Muddy Waters or Citron releasing detailed reports explaining why a stock is overvalued.
With Burry's real-estate short, he knew when the adjustable rates would kick in.
What's the forcing function for semiconductors?
How did he forget you need two pieces to go short:
1) A company that is overvalued
2) Knowledge of some forcing item that will cause the market to re-evaluate the price of the above
Without the second, you can be right about the first and still lose your shirt.
That's why you see guys like Muddy Waters or Citron releasing detailed reports explaining why a stock is overvalued.
With Burry's real-estate short, he knew when the adjustable rates would kick in.
What's the forcing function for semiconductors?
buy high, sell higher?