After Nearly Dumping His Entire Portfolio and Buying Puts on Nvidia, Did Famed Investor Michael Burry Just Pull Off Another "Big Short?" It Certainly Looks That Way.

Core Insights - Michael Burry, known for his successful bet against the housing market during the Great Recession, has sold nearly all stocks in his fund Scion Asset Management and purchased put options, indicating a potential bearish outlook [2][6][10] Group 1: Burry's Investment Strategy - Burry typically maintains a small portfolio, holding around a dozen stocks, and has recently sold large positions in Chinese companies like Alibaba and JD.Com while also buying put options on these stocks [3][9] - The decision to sell coincided with rising trade tensions between the U.S. and China, suggesting Burry anticipated a market downturn due to tariffs [6][11] - Burry's remaining long position is in Estée Lauder, which has seen a significant decline, and he doubled his investment in the company during the first quarter [9][10] Group 2: Market Context and Reactions - The market experienced a sharp decline in early April, falling nearly 20% from February highs, which aligns with Burry's timing of selling stocks [6][10] - Nvidia, a company heavily impacted by trade tensions and export restrictions, saw its stock price drop significantly but has since recovered following a pause in tariff increases [7][8] - Burry's past behavior indicates he may be short-term bearish while potentially preparing to buy back into the market after a dip, as seen in previous trading patterns [10][11]