The Zhitong Finance App learned that the “big short” and well-known investor Michael Burry (Michael Burry) has cut his short position with heavy equipment manufacturer Caterpillar (CAT.US) by 75% — the value of the company's put options he previously held has almost quadrupled. Burry revealed this operation in a post on his Substack newsletter “Cassandra Unchained.”

“The value of my Caterpillar put option almost quadrupled, and today I lost 75% of my position.” Burry wrote in a Nov. 6 post.

He also said that the market value of his remaining positions is now roughly equivalent to his initial investment when opening a position at the end of the second quarter.

Caterpillar shares fell 10% last week, the biggest weekly decline in 18 months. Concerns surrounding the stock's valuation, production restrictions, and uncertainty about AI-related spending are putting pressure on the stock price.

At the same time as Bury has reduced its positions, it is still maintaining short positions in other areas of the market. In an earlier Substack post, he said that most short exposures have been consolidated into put options for 100 and VanEck Semiconductor ETF (SMH), while retaining put options on individual stocks such as Oracle (ORCL.US), Palantir (PLTR.US), MetLife (MET.US), and Caterpillar.

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