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Michael Burry says 2022 is a “plane crash”.  Here’s what the legendary investor is betting on.

  • Michael Burry returned to Twitter (NYSE:TWTR) with a bearish warning
  • Since the first quarter, Burry’s largest position has been in put options against Apple (NASDAQ:AAPL)
  • Burry manages over $290 million in assets under management (AUM)

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Famous 2008 crash caller Michael Burry is back Twitter (NYSE:TWTR). Today he issued a dire warning to his supporters. As of this writing, Burry’s Twitter account has a tweet:

Current market sentiment certainly supports its bold correlation to the current market and the stock market crash of 2008. CNN The fear and greed index currently sits at 12 out of 100, indicating extreme fear. The index takes into account seven factors, including the put/call ratio and the volatility index (VIX) in relation to its 50-day moving average. So if Burry is as bearish as he was in 2008, what exactly is he betting on?

What is Michael Burry betting on?

Burry’s Hedge Fund, Scion Asset Management, is a very active fund with high turnover. According to Whale Wisdom, the fund has an average holding period of 0.08 quarters. Based on the latest Form ADV, Scion has over $291 million in AUM.

In addition, each of the fund’s positions is a new position purchased during the first quarter, with the exception of Bristol Myers Squibb (NYSE:BMY). During the quarter, Scion sold several names, such as General dynamics (NYSE:GD), Geographic group (NYSE:GEO) and corecivic (NYSE:CXW). Currently, the fund holds 12 positions in its 13F portfolio.

Based on Burry’s tweet, it’s not really surprising to see that his largest position is put options vs. Apple (NASDAQ:AAPL). The fund holds 2,060 put options. These put options represent the right to sell 206,000 shares of AAPL if they expire in the money. In total, options make up a whopping 17.86% of Scion’s 13F portfolio.

The second and third positions in the fund are Bristol-Myers Squibb and Reservation of credits (NASDAQ:BKNG), respectively. BMY has an allocation of 10.88%, while BKNG has an allocation of 9.33%. BMY has proven to be a great bet for Burry, as it’s up 23% year-to-date (YTD), compared to the S&P500 Loss since the beginning of the year of 18%. BKNG is a different story, as it’s down 17% year-to-date, but it still beats the S&P 500 return by 1%.

Investors will surely want to follow Burry’s Twitter account to see how he views the market.

At the date of publication, Eddie Pan did not hold (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to Publication guidelines.


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