Michael Burry, the "Big Short" famed for accurately shorting the U.S. housing market in 2008, has recently made a significant shift in his strategy.
He posted on a social platform announcing that he had purchased shares of $JD and $BABA, stating that JD.com's stock price weakness provided an "extremely attractive entry point." Simultaneously, he further increased his holdings of $NVDA put options, continuing his cautious stance on the sustainability of the AI boom.
The "Big Short" Rebuys Chinese Tech Stocks
Michael Burry is a famous Wall Street "Big Short." As early as before the 2008 U.S. subprime mortgage crisis erupted, he successfully predicted the real estate market bubble through rigorous deduction and calculation. Against a backdrop where almost everyone was extremely optimistic about the housing market, Burry began shorting the U.S. real estate market through credit default swaps (CDS) starting in 2005, ultimately reaping substantial returns. In 2015, his story was adapted into the film "The Big Short."
On April 10, Burry wrote in a post released to paid subscribers on Substack that he had purchased shares of JD.com and $09988 that day. Among these, JD.com was a significant addition, with a position slightly above 6%; Alibaba was a new position, slightly smaller than JD.com. Burry also stated in the post that JD.com's recent stock price weakness provided an "extremely attractive entry point."
Looking at stock price performance, JD.com has been under sustained downward pressure since last October, beginning a volatile rebound after hitting a阶段性 low in March this year.
Since last October, Alibaba's stock price has generally shown a volatile downward trend.
In recent years, Burry's views on Chinese tech stocks have undergone several major shifts. Starting in the fourth quarter of 2022, his hedge fund Scion Asset Management began aggressively buying Chinese tech stocks like Alibaba and JD.com. By the end of 2024, these positions accounted for over 50% of his investment portfolio.
However, by the first quarter of 2025, due to a more cautious outlook on the market, Burry almost "liquidated all at once" the aforementioned long positions, retaining only a small long position in $EL, while simultaneously buying put options on Chinese tech stocks like Alibaba and $PDD. Entering the latter half of 2025, Burry's stance reversed again; he sold the put options he previously held and instead bought call options on Alibaba and JD.com. But by the end of the third quarter of last year, he adjusted his direction once more, selling those call options.
It is worth mentioning that last November, Burry announced that Scion Asset Management had deregistered with the U.S. Securities and Exchange Commission. Burry explained that the deregistration was to摆脱 compliance burdens and misunderstandings arising from filing documents; the firm itself was not closed and would still be used for other investments, but it would no longer manage funds for external investors.
Increases Nvidia Put Options
While buying Chinese tech stocks, Burry also further expanded his Nvidia put option position. This time, he purchased put options expiring in January 2027 with a strike price of $115, at a cost of $3.30.
At the end of last year, Burry posted on a social platform questioning the multi-billion dollar "circular financing" relationship between Nvidia and AI companies like OpenAI, $MSFT, and $ORCL. In response to his allegations, Nvidia issued a detailed memo to Wall Street analysts refuting them point by point. Subsequently, Burry posted again, providing a detailed rebuttal to Nvidia's response, directly accusing them of distorting his arguments to avoid the real core issues.
In February of this year, Burry issued a warning about whether the artificial intelligence boom could be sustained. He questioned whether the massive investments by tech giants in data centers could be maintained long-term without dragging down their own balance sheets and profits. This increase in Nvidia put options also continues his consistent cautious attitude towards the AI sector.