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Michael Burry, of Big Short fame, just bet $1.6B on a stock market crash

62 pointsby Vasniktelalmost 2 years ago

6 comments

jl2718almost 2 years ago
Simultaneous debt collapse and global de-dollarization: good luck timing this one.<p>Knowing that the markets are massively distorted and unsustainable gets you nothing. Knowing the next wave of irrational distortion gets you good long-term returns. Good timing is either pure luck, insider information, or outright manipulation.
marcopicentinialmost 2 years ago
The $ amount listed on 13F is NOT the premium value but rather the value of shares the position represents (100x multiplier)<p>Back out the 13F SPY value: $886mm&#x2F;2mm = ~$443<p>He owns 20k SPY puts (2mm&#x2F;100) likely worth $10&#x27;s of millions
ionwakealmost 2 years ago
Apparently he did this a while ago its just hitting the news now. As they say, its hard to time the market and it can remain illogical longer than you remain solvent. But hey I dont know verify what I say too.
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dharma1almost 2 years ago
The 13Fs are filed quarterly so there’s always a lag. AFAIK he spent 2% of the fund AUM on these so downside pretty capped, it’s an asymmetric bet on indices heading lower.<p>Anyone know what strike price &#x2F; expiration date on the puts?
hbcondo714almost 2 years ago
Overall, Burry &#x2F; Scion bought 27 new stocks and sold 15 stocks when compared to their previous quarter&#x27;s holdings[1]. This can be hard to see on the SEC.gov filing CNN directly links to since that only shows one quarter of holdings.<p>[1] <a href="https:&#x2F;&#x2F;last10k.com&#x2F;sec-filings&#x2F;1649339" rel="nofollow noreferrer">https:&#x2F;&#x2F;last10k.com&#x2F;sec-filings&#x2F;1649339</a>
YeBanKoalmost 2 years ago
The bet against market from someone like him is bot unusual, but the size of the bet: 80% of his portfolio?
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