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Burry Bets Against AI: Switches Shorts to Long-Term Puts
29 Sep
Summary
- Burry replaced common stock shorts with long-term put options.
- He initiated a new short position against MetLife using LEAP puts.
- Burry cited research suggesting the AI bubble could burst soon.
Michael Burry, known for 'The Big Short,' has drastically altered his investment strategy, replacing his short common-stock positions with put options. These new positions, many with expirations stretching into 2027, reflect a forward-looking bearish stance. Burry covered shorts on companies like Micron, Nvidia, and Palantir, replacing them with put contracts. He also initiated a new short on MetLife using long-term options.
Burry stated that while tax-loss harvesting contributed to some portfolio adjustments, the majority of his repositioning was driven by recent research. This research led him to conclude that the anticipated bubble in artificial intelligence could deflate sooner rather than later. His actions suggest a significant concern about the sustainability of current AI market valuations, prompting a move to longer-dated, more protective bearish positions across various sectors.
