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Writer's pictureTainan Paiva

Renowned Investor Michael Burry Closes Short Position on US Stock Markets, Incurring Over 40% Losses

11/15/2023

Michael Burry, acclaimed for his role in the film 'The Big Short,' has recently exited a short position on the American stock markets, resulting in substantial losses exceeding 40%, totaling $640 million. Initially, Burry had invested over $1.6 billion in the opposing bet.


Burry gained fame by foreseeing the real estate bubble in the United States before the 2008 crisis, profiting considerably from a successful bet against subprime mortgage-backed securities at that time.


The unfavorable results were disclosed in a report submitted to the Securities and Exchange Commission (SEC) by Burry's management. Faced with defeat, the investor liquidated a significant portion of his holdings, given that he had invested 95% of the amount in the short position against the markets.


Following the disastrous performance, Burry is redirecting his investments towards the semiconductor sector. According to Reuters, the investor has allocated approximately $50 million to the iShares Semiconductor ETF (SOXX.O), which focuses its investments in this market segment.

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