Michael Burry reveals new bet against chip stocks after closing out winning market short

Published Tue, Nov 14 202312:51 PM ESTUpdated Tue, Nov 14 20231:06 PM EST

Jesse Pound @/in/jesse-pound @jesserpound

Hedge fund manager Michael Burry is potentially making another bet that a part of the investing world has gotten too hot, just as he did with the broader stock market earlier this year and with the housing market more than a decade ago. Burry's Scion Asset Management has a put position against 100,000 shares in the iShares Semiconductor ETF (SOXX) , according to a securities filing representing the end of the third quarter released Tuesday. The exact value of the options position is not known, but the notional value of the 'SOXX' shares involved was more than $47 million at the end of the quarter. It is also not known whether Burry still holds the position or whether it's some sort of hedge against a long position. A put option gives investors the ability to sell the underlying asset at a predetermined price. The date of expiration and the strike price of the put position were not disclosed. One put contract typically covers 100 shares of the underlying stock or ETF, so Burry's position is likely 1,000 put contracts. The SOXX is up more than 30% year to date, and its top holdings include Advanced Micro Devices , Broadcom and Nvidia . SOXX YTD mountain Semiconductor stocks have rallied sharply in 2023. Burry also closed out previous put positions against the S & P 500 and the Nasdaq 100 during the quarter, according to securities filings. Those positions were winners for Burry as the stock market finished the third quarter lower. Burry is one of several hedge fund managers who correctly identified the housing bubble ahead of the 2008 financial crisis. His actions at that time were captured in the Michael Lewis book "The Big Short" and the movie of the same name. Burry closed his previous hedge fund, known as Scion Capital Management, after the financial crisis. The newer Scion Asset Management does also hold long positions on stocks, including a $7.7 million position in Stellantis and a stake in Nexstar Media Group worth just under $7 million, according to the filing. The hedge fund filings do not show all types of derivatives or private investments, so the full scope of Burry's positions are unknown.