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Burry, of ‘Big Short’ fame, bearish bet against semiconductor ETFs


NEW YORK, Nov 14 (Reuters) – Hedge fund manager Michael Burry, whose bets against the U.S. housing market before the 2008 financial crisis were chronicled in the movie “The Big Short,” added a position in the third quarter bearish on semiconductor options. while other investors also reduced their exposure to the sector, according to securities filings released Tuesday.

Burry also closed bearish options against the broad S&P 500 and Nasdaq 100 indexes, according to filings.

Scion Asset Management’s largest new position last quarter was in bearish options on an exchange-traded fund focused on semiconductors. He purchased puts with a notional value of $47.4 million against the iShares Semiconductor ETF (SOXX.O), according to the filing. The ETF is up 45.37% year to date.

Notional value refers to the total value of the underlying securities controlled by the options contracts. This figure is different from the price paid for the contracts or their actual current value, which, although not disclosed in the regulatory filing, is likely a much lower number.

The documents also showed that the Burry fund no longer held put options on the Nasdaq 100 and the S&P 500. In the second quarter, the Burry company held puts with a notional value of $739 million against the popular Invesco QQQ Trust ETF (QQQ.O) and separate put options. put options with a notional value of $886 million against the SPDR S&P 500 ETF (SPY.P).

The S&P 500 fell 3.6% in the third quarter, while the Nasdaq 100 fell 3%.

Put options give the right to sell stocks at a fixed price in the future and are typically purchased to express a bearish or defensive opinion.

It’s unclear exactly how Burry’s options position played out. Regulatory filings do not require disclosure of option exercises, purchase prices and expiration dates. Since the filings only reveal long positions, it was also unclear whether the positions were held directly or against other contracts.

Some other well-known investors have also changed their positions in the semiconductor sector. Soros Fund Management, the asset manager of billionaire George Soros’ Open Society Foundations, dumped its 10,000 shares of Nvidia (NVDA.O) and added 80,000 shares of U.S.-listed Taiwan Semiconductor Manufactoring Company (TSMC). United.

Hedge fund Man Group also sold its 1.1 million shares in Nvidia, while Renaissance Technologies LLC sold its entire stake in the company. Tiger Global Management and Eisler Capital, however, increased their stake in Nvidia.

Man Group and Duquesne Family Office have liquidated their entire stake in TSMC, according to a filing.

TSMC’s depositary receipts rose 32.8% this year and fell nearly 14% in the third quarter. Nvidia shares have soared 240% year to date and were up 2.8% last quarter.

Reporting by Carolina Mandl, in New York; Editing by David Gregorio, Anna Driver and Deepa Babington

Our Standards: The Thomson Reuters Trust Principles.

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