Michael Burry Shorts BlackRock Semiconductor ETF SOXX

Michael Burry, the investor known for making millions in his “big short” bet against the early 2000s housing bubble, is betting against stocks within yet another booming sector—this time targeting a BlackRock Inc. semiconductor ETF. 

Burry shorted the iShares Semiconductor ETF (SOXX), an exchange-traded fund which has gained nearly 50% so far this year on surging share prices for Nvidia Corp., Advanced Micro Devices Inc. and other chipmakers. The subject of "The Big Short" movie bought puts on 100,000 shares of the fund, amounting to about $47 million of bets against BlackRock’s ETF, according to his hedge fund’s 13-F filing with the SEC on Tuesday.

Additionally, Burry closed bets he made last quarter against the S&P 500 and Nasdaq 100, the filing said. The S&P 500 and Nasdaq 100 tumbled 3.6% and 3%, respectively, in the third quarter of this year, suggesting the bets didn't pay off. The filings, however, don't include buy and sell dates that would be needed to calculate whether or not the bets paid off.   

Burry Bets on SOXX Overvaluation?

Burry's firm Scion Asset Management, also known for bets against Cathie Wood’s ARK Innovation ETF  and Tesla Inc., took short positions on both the SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ) in the third quarter. Those bets were not included in the recent filing.

Recent filings also show Burry’s hedge fund Scion Asset Management consolidated its portfolio, cutting positions by about 60%, to 13 from 33. 

Despite the huge funding surge into artificial intelligence companies that’s marked much of this year, some investors believe the market has overvalued firms like Nvidia, which has soared 243% year to date. The iShares Semiconductor ETF (SOXX) is up nearly 50% so far this year. 

In March of this year, Burry admitted in a tweet he was “wrong to say sell” to investors in January.

Contact Lucy Brewster at [email protected].