Famed investor Michael Burry is warning investors of a market bubble that could end badly in coming months.
In a new social media post, Burry, who was profiled in the book and movie “The Big Short” about the 2008 financial crisis, delivered a stark warning.
He wrote: “Sometimes, we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play.”
The last sentence in the post is a quote from the 1983 movie “WarGames” about a potential nuclear war that is narrowly averted.
Burry posts on social media infrequently and his messages are typically deleted shortly after they appear.
Still, the investor, who runs his own hedge fund called Scion Asset Management, has a large following among individual retail investors after he successfully shorted the U.S. housing market prior to its collapse in 2008-09, leading to the financial crisis.
It’s unclear how Burry’s hedge fund is currently positioned. His most recent 13-F filing with the U.S. Securities and Exchange Commission (SEC) showed that he held only six positions.
None of those positions are mega-cap technology companies. Instead, Burry has invested in beaten down stocks such as Canada’s Lululemon Athletica (LULU) and UnitedHealth (UNH).
He also held positions in Estee Lauder (EL), Mercadolibre (MELI), Bruker Corp. (BRKR), and Regeneron Pharmaceuticals (REGN), as well as call and put options on several stocks.
Burry’s next 13-F filing with the SEC will be made public in about two weeks and show his holdings at the end of September this year.
The new social media post might indicate that Burry has sold all or most of his remaining stock holdings as he feels the market is in a bubble, although his current positions are not known.
Burry has a history of buying and selling stocks relatively quickly, often changing his entire portfolio from quarter-to-quarter.
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