Michael Burry, the man who famously shorted subprime mortgages during the 2008 financial crisis and then got the movie ‘The Big Short’ made after him, was just wrong in a big way.
Back in August, Burry took a $1.6 billion short position on the S&P 500 and the Nasdaq 100.
Well, he was wrong. Very wrong.
This week, Burry closed this short position for an estimated loss of 40%. Oof.
Well, guess what? He hasn’t learned his lesson.
This time, he’s shorting semiconductors.
Burry’s fund, Scion Capital, newest position:
- Shorting 100,000 shares of BlackRock’s semiconductor ETF
These 100,000 shares have a notional value of $47.4 million and it’s betting against iShares Semiconductor ETF (SOXX).
Shares of this ETF have gained +48.51% YTD
Other Semiconductor companies this year:
- Nvidia (NVDA) shares have gained +241.05% YTD
- Advanced Micro Devices (AMD) shares have gained +85.65% YTD
- Intel (INTC) shares have gained +50.58% YTD
- Taiwan Semiconductor (TSM) shares have gained +33.11% YTD
Source for all this is from here