‘The Big Short’ investor is cutting overall exposure and shifting his portfolio as a recent market rally pushes his short book into the red.
- Burry swapped his losing SOXX put position for a significantly larger QQQ put position, which now accounts for about 6% of his portfolio.
- He increased his Micron short as MU approached $1000, while keeping his SOXX short as his largest bearish position.
- Burry covered his Tesla and Applied Materials shorts after booking sizable gains.
Michael Burry is reducing his overall market exposure and raising cash while maintaining a short bias, as a recent rally pushed his short portfolio into losses.
‘The Big Short’ investor sold his iShares Semiconductor ETF (SOXX) put options, shifted into a larger Invesco QQQ Trust (QQQ) put position, increased his Micron (MU) short and exited his Tesla (TSLA) and Applied Materials (AMAT) shorts. He also trimmed his long positions across the board, bringing his cash position to about 12%, saying the moves are preparation for a “larger fall” in the market.
Burry said the portfolio changes are preparation for a larger market decline. “My goal was to reduce gross exposure, and to free up some cash, while maintaining the short bias,” he wrote in a post on Substack.
Burry Swaps SOXX Puts For QQQ
Burry said he was “roughly breakeven” on his shorts, “but the situation is tipping into a loss position across the short portfolio as the market, and certain stocks, rallied.”
He said he is now trying to reduce his overall exposure by “selling volatility where it still exists.” As part of the move, Burry completely closed his losing SOXX put position.
Burry exchanged the position for a much larger position in QQQ puts. He rolled his January 2027 QQQ puts struck in the mid-high $500s to a June 2027 position struck in the mid-high $600s.
The QQQ put position now accounts for about 6% of his portfolio. Burry said he “spared” his Nvidia (NVDA) and Palantir (PLTR) puts.
Micron Short Gets Bigger
Burry surveyed his short positions for places to reduce exposure, but made one move counter to the trend by increasing his Micron short as the stock moved up toward $1000 again.
He kept the SOXX short as his largest position at about 7% of the portfolio, followed by Micron and then Nebius (NBIS), Nvidia, Oracle (ORCL), and Palantir.
Burry also covered his Tesla short after a decent gain and covered his Applied Materials short. He trimmed his Caterpillar (CAT) short by 25%.
“Quick sizable short sale gains are gift horses in this market,” Burry wrote.
Oracle’s puts remain very expensive, according to Burry, so he continues to hold the short position in the shares.
Burry Raises Cash To 12%
Burry also trimmed his long positions, reducing each by a small amount. The moves resulted in an overall cash position of about 12%.
His largest positions, all around the same size, are Zoetis (ZTS), Mercado Libre (MELI), JD.com (JD) and Adobe (ADBE).
The next group includes Lululemon (LULU), Veeva (VEEV), Flutter (FLUT), Molina Healthcare (MOH), HCA Corp (HCA), and PayPal (PYPL).
At about 5% each, Burry’s positions include Sprouts (SFM), Fannie Mae (FNMA), and Freddie Mac (FMCC).
NVDA, PLTR, MU, TSLA: Stocktwits Retail Sentiment
On Stocktwits, retail sentiment for NVDA was ‘neutral,’ PLTR was ‘bullish,’ MU was ‘bearish,’ and TSLA was ‘neutral’ at the time of writing. Message volume was ‘normal’ for NVDA and PLTR, while it was ‘low’ for MU and TSLA.
Year to date, NVDA shares have gained 20%, while PLTR stock is down around 4%. MU stock has soared more than 240%, while TSLA shares have lost nearly 28%.
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