Michael Burry LOST A Lot of Money | Burry 13F Filing

TL;DR

Michael Bur made a bet against the stock market using options, but the reported loss of 40% is misleading. He likely only spent around $10 million of his fund and has a history of outperforming the market.

Transcript

Michael bur has exited his $1.6 billion bet at a 40% loss but hang on a second that's very misleading and it's bothering me that people are saying it we're going to break down what we actually think he really lost which is a fraction of that money but also he's placed a few new bets against some big companies and we'll write that down right now so ... Read More

Key Insights

• 🌸 Michael Bur's reported loss of 40% is not accurate; he likely only spent around $10 million on his $1.6 billion bet.
• 🇧🇫 Bur has a history of outperforming the market, despite criticism of his investment approach.
• 👶 He has made new bets against overvalued semiconductor companies, signaling his belief in their potential decline.
• 👻 Options, such as buying puts, offer a cheaper alternative to investing directly in stocks and allow for greater potential returns in the event of a decline.
• 🍂 Bur's investment strategy focuses on identifying overvalued stocks and profiting from their potential fall.
• 🇧🇫 Reports comparing Bur to Jim Kramer are unfair, as Bur has a more rigorous investment process and does not rely on public attention for his investment decisions.
• 🙃 The nominal value of the shares Bur owns is not an accurate representation of his position, as the value of options is based on the amount invested, not the current stock price.

Questions & Answers

Q: What is Michael Bur's investment strategy?

Michael Bur uses options, specifically buying puts, to bet against stocks he believes will fall. This allows him to profit if the stock prices decline.

Q: How much money did Michael Bur actually lose on his $1.6 billion bet?

Based on estimates, it is likely that Bur only spent around $10 million of his fund on the bet. The reported 40% loss is a misleading figure.

Q: Does Michael Bur have a good track record as an investor?

Yes, Bur has a history of outperforming the market, as evidenced by his performance over the last 5 and 10 years. While he has received criticism, he has been successful in his stock-picking endeavors.

Q: What new bets has Michael Bur placed recently?

Bur has made new bets against overvalued semiconductor companies by buying puts on the semiconductor index (SXX). He believes that these companies are experiencing excessive hype and could face a significant decline in their stock prices.

Summary & Key Takeaways

• Michael Bur placed a bet using options called buying puts, which allows him to profit from a fall in stock prices.

• Contrary to reports of a 40% loss, he likely only spent around $10 million of his fund on the bet.

• Despite criticism, Bur has a track record of outperforming the market and has made new bets against overvalued semiconductor companies.