- Michael Burry, whose famous bet against the housing market in 2008 was depicted in “The Big Short” movie, dumped all, or some, of his holdings in five stocks from his portfolio in the third quarter this year.
- Burry’s largest holding is still Google parent Alphabet, but he ditched 50% of his call position in company, according to a 13F filing.
- He also sold 50% of his Facebook position, 38% of GameStop, and completely sold out from Booking Holdings and Bed Bath & Beyond.
- Burry’s Scion Asset Management has $US336 million worth of assets under management.
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The investor, who made millions by betting against subprime-mortgage bonds ahead of the 2008 US housing meltdown, also sold 38% of his fund’s position in video-game retailer GameStop.
Even though he let go of a significant amount in Google’s parent firm, Alphabet remains the largest call-position in his fund at $US58 million, making up 17.8% of his $US330 million portfolio. He spent $US113 million to buy 80,000 call options on Google.
Call contracts give the holder the option to buy a stock at a given price, rather than buying it outright. An advantage to holding calls is the owner can choose whether or not to exercise that right to buy if the stock is trading more cheaply than the one predetermined in the options contract.
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His hedge fund completely sold its position in online travel agent Booking Holdings since the industry has taken a beating this year, but acquired call options to perhaps weigh out its chances once the stock rebounds â€” similar to Carnival Cruises. He ditched all his shares in homeware retailer Bed Bath & Beyond.
Burry’s bet against the housing market featured in Michael Lewis’ bestselling book “The Big Short,” and the movie in which he was portrayed by Christian Bale. He currently runs a California-based hedge fund, Scion Asset Management, that manages $US336 million worth of assets as of March 27.
He views policies including government lockdowns to curb the spread of coronavirus as more detrimental to Americans than the virus itself.