The Zhitong Finance App learned that Michael Burry, a well-known investor and prototype of the movie “The Big Short,” said on Wednesday that he was reducing the risk of all positions and liquidated Nvidia (NVDA.US) and Palantir (PLTR.US) put options due in December 2026 without extension.
Bury posted on Substack that he “reduced his risk exposure” in September and now holds some cash, and he is “happy to hold and wait and see how the market develops.” “This fall's market is going to be very interesting,” Barry wrote.
According to the ranking of positions provided by Bury, high-end sportswear brand Lululemon (LULU.US), healthcare service provider Molina Healthcare (MOH.US), and Latin American e-commerce platform MercadoLibre (MELI.US) are still his top three holdings. Burry said that although he has reduced some of his long positions, the basic order of the size of his positions has not changed.
Oracle (ORCL.US), Palantir, and Nebius (NBIS.US) are still his top three short positions, followed by Nvidia and iShares Semiconductor ETF (SOXX).
According to reports, Bury is famous for successfully predicting the 2008 financial crisis. He has been short on US stocks for a long time, and is also one of Wall Street's staunch skeptics of the AI craze. He previously shorted individual stocks such as Nvidia, Oracle, Palantir, Nebius, and Caterpillar.
Burry also said on Wednesday that he is watching the dollar spot index falling again and plans to discuss the foreign exchange market in a follow-up post.
On Stocktwits, retail investors remained “bearish” on Palantir over the past day, while their views on Nvidia changed from “neutral” to “bearish.”
It is worth noting that US stocks have recently entered an “eventful fall”: the geopolitical conflict pushed international oil prices to break through the $100 mark, the US PPI rose 5.4% year on year in August, and expectations of interest rate hikes heated up; compounded by the upcoming midterm elections, multiple pressures continued to put pressure on the market. As of September 10, the three major US stock indices have been falling for four consecutive trading days.
CME's “Federal Reserve Watch” tool shows that the probability that the Fed will raise interest rates by 25 basis points next week is over 70%. The ECB raised interest rates by 25 basis points this week. The overall policies of the world's major central banks are tight, putting pressure on risky assets.