News Flash: Billionaire Michael Burry Bets Big Against AI Stocks Palantir and Nvidia

Billionaire Michael Burry was profiled in The Big Short: Inside the Doomsday Machine, a book that analyzed the causes and effects of the financial crisis in 2008. Burry made $700 million for clients (and another $100 million for himself) by betting against the subprime mortgages that contributed to the housing bubble.Today, Burry is the sole portfolio manager at Scion Asset Management, a hedge fund that outperformed the S&P 500 (SNPINDEX: ^GSPC) by 20 percentage points during the last three years. Interestingly, his latest Form 13F shows sizable short positions in two popular artificial intelligence (AI) stocks.Put options bestow the right (but not the obligation) to sell a security at a predetermined price. Investors buy put options when they expect a stock to drop. So, Burry is extremely bearish on Palantir and Nvidia. Here's what investor should know.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool