Michael Burry, known for his "Big Short" bet, has publicly established a short position on semiconductors. This move comes as the Philadelphia Semiconductor Index recorded 18 consecutive days of gains, a new record. Burry stated that the current rally is driven by technical factors rather than fundamental support.
On Friday, Burry disclosed in a Substack post that he purchased put options on the iShares Semiconductor ETF. Specifically, he bought contracts expiring in January 2027 with a strike price of $330. This action indicates he is betting on a significant decline in this popular market sector over the next approximately two years.
Burry's announcement coincided with the Philadelphia Semiconductor Index achieving its 18th straight day of gains. He was explicit in his post, writing, "If he held long positions in semiconductor stocks, he would choose to sell now."
According to a previous report, during a significant downturn for U.S. software stocks on a "Black Thursday," Burry announced purchases of Microsoft stock and increased his holdings in MSCI, PayPal, and Adobe.
**Questioning the Rally's Logic: Technicals Over Fundamentals**
Burry's assessment of the current semiconductor rally is direct and pointed. He wrote, "I know the Philadelphia Semiconductor Index will pull back, and veteran semiconductor professionals know it too. The current rise is more a result of technical factors."
He further noted that while narratives surrounding massive data center expansion and chip supply shortages are powerful, he views them as being driven more by market sentiment than by sustainable fundamental logic. Burry is widely recognized as the inspiration for "The Big Short" for his successful bet against the subprime mortgage market before the 2008 financial crisis.
**Other Portfolio Moves: Increased Stakes in Fannie, Freddie, Sprouts, and Molina**
Alongside his semiconductor short, Burry disclosed several long positions. He stated he had increased his holdings of Fannie Mae and Freddie Mac stock and added to his position in the organic grocery chain Sprouts Farmers Market.
Regarding his current largest holdings, Burry listed three core assets: GameStop, JD.com, and healthcare management company Molina Healthcare, noting he had purchased additional shares of Molina Healthcare.
This portfolio composition shows that while adopting a defensive stance towards high-flying tech themes, Burry is concentrating on consumer and healthcare assets with relatively lower valuations.
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