(Bloomberg) - Michael Burry’s Scion Asset Management disclosed bearish wagers on Nvidia Corp. and Palantir Technologies Inc. just days after the hedge fund manager posted a cryptic warning to retail investors about market exuberance.
Burry, who rose to fame for his 2008 bet against the US housing market, bought put options — that profit from price declines — on Nvidia and Palantir, according to 13F regulatory filings released on Monday. He also disclosed call options on Halliburton Co. and Pfizer Inc., the filings show.
Shares in Palantir, which raised its annual revenue outlook Monday, fell as much as 8.1% in premarket trading as analysts pointed to the stock’s soaring valuation. Nvidia shares were also lower, slipping as much as 2.6%.
Investor concerns have risen for months as a wave of circular deals involving OpenAI, Nvidia and other AI-focused firms sparked concerns that the AI boom is being artificially propped up.
Burry took to social media last week with a cryptic post on X that included an image of his character from movie and a warning that “sometimes, we see bubbles.” The hedge fund manager posted another series of images to his account on Monday evening, including a graphic from a Bloomberg News story on circular financing concerns surrounding Nvidia, among other firms.
This is not Burry’s first bearish wager against Nvidia. During the first quarter Scion disclosed that it had liquidated almost its entire listed equity portfolio and bought put options on the chip giant, as well as a handful of US-listed Chinese tech giants.
Scion’s first-quarter filing included an additional disclosure stating that the puts being disclosed “may serve to hedge long positions which are not eligible to be reported” in the 13F. Monday’s third-quarter filing did not include a similar statement.
Scion Asset Management did not immediately return a request for comment.
By Subrat Patnaik
