share_log

Michael burry is betting against Apple: Here's the size of 'the big short' investor's stake

Benzinga Real-time News ·  May 17, 2022 02:14  · Insights

Michael Burry has been known to take large positions against companies he thinks are overvalued. Over the years, "The Big Short" investor has actively shorted $Tesla(TSLA.US)$ with a belief the stock was overvalued. Burry also shorted shares of the $ARK Innovation ETF(ARKK.US)$.

What Happened: Burry revealed his latest investments in a new 13F filing.

Among the latest purchases by Burry and Scion Asset Management were $Alphabet-A(GOOGL.US)$, $Meta Platforms(FB.US)$ and Discovery, which now trades as $Warner Bros Discovery(WBD.US)$.

Among the positions revealed in the 13F was a bearish bet on Apple Inc (NASDAQ:AAPL). Burry holds a put position worth 206,000 shares as of March 31.

The bearish position is estimated at $36 million if exercised, which would be the largest position in the portfolio. 

Why It's Important: After a strong run for Apple shares over the last three years, the stock is now down 20% year-to-date.

Burry has been bullish on Apple in the past, noting in 1999 that the stock was worthy of Warren Buffett. Years later, Buffett bought shares of Apple for $Berkshire Hathaway-A(BRK.A.US)$.

Scion Asset Management held positions in 12 stocks including the put position in Apple. At the end of December, Scion had positions in only six stocks.

Scion's position in $Bristol-Myers Squibb(BMY.US)$ was increased in the first quarter and sat at $21.9 million at the end of the first quarter.

A recent tweet from Burry could have signaled a belief that more pain is ahead for stocks. Burry has not made comments on the Apple position as of the time of writing.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
    Write a comment