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Michael Burry’s Recent Investments
Michael Burry, known for his prediction of the 2008 financial crisis, has made significant investments against Nvidia and Palantir Technologies, according to Scion Asset Management’s latest Form 13F, which covers trading activity for the September-ended quarter. Burry holds a $912.1 million notional value in put options for Palantir and a $186.6 million notional value in put options for Nvidia.
Burry’s investments reflect his strategy of betting against perceived market overvaluations, particularly supported by Nvidia’s and Palantir’s soaring price-to-sales ratios, with Nvidia at over 30 and Palantir at 152. Historically, such high ratios have preceded market corrections.
Despite the current growth trends in AI that may bolster these companies in the short term, Burry’s track record suggests that market bubbles, like those seen during the dot-com era, could lead to a downturn, making his bearish bets potentially profitable in the long run.
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