Michael Burry disclosed that he adjusted his portfolio for tax-loss harvesting and increased his JD.com call options and BYD common stock holdings.
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“The Big Short” Michael Burry’s latest portfolio adjustment: increased JD.com holdings 2029-year call options and BYD common stock
BlockBeats news,October 6, Michael Burry, the real-life figure portrayed in “The Big Short,” disclosed today via his Substack account that he adjusted his portfolio for tax-loss harvesting, selling Lululemon and switching into Deckers, selling Fannie Mae and buying Freddie Mac; switching his Sprouts Farmers Market position to 2028-year call options, switching Zoetis stock to 2029-year call options, while increasing his JD.com 2029-year call options and BYD common stock holdings, and adding MetLife 2029-year put options.
In addition, Burry is still waiting for Alibaba to fall further, while his Fiserv position remains unchanged. Burry said that the fourth quarter “will bring additional pressure to stocks that have declined significantly.”
Note: Tax-loss harvesting refers to selling assets at a loss to realize an accounting loss, thereby offsetting capital gains from other investments and reducing the tax burden.
Original link https://m.theblockbeats.info/flash/370474
Key points
01
BlockBeats reported that Michael Burry disclosed portfolio adjustments through his Substack account on October 6.
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The disclosure stated that the adjustment was made for tax-loss harvesting.
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Burry sold Lululemon and switched into Deckers, and sold Fannie Mae and bought Freddie Mac.
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Burry switched his Sprouts Farmers Market position to 2028-year call options, and switched Zoetis stock to 2029-year call options.
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Burry increased his JD.com 2029-year call options and BYD common stock holdings, and added MetLife 2029-year put options.
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Burry is still waiting for Alibaba to fall further, while his Fiserv position remains unchanged.
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Burry said that the fourth quarter “will bring additional pressure to stocks that have declined significantly.”
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
This is a personal portfolio-adjustment update. Call options are typically used to express an expectation that the underlying asset will rise in the future, while put options are typically associated with expectations of a decline or risk hedging; however, the original text does not disclose the number of positions, execution prices, or portfolio weight, so the scale of the bet cannot be determined. Tax-loss harvesting involves selling assets at a loss to realize those losses and use them to offset capital gains from other investments.
Why it matters to readers
These disclosed portfolio adjustments may draw market attention to changes in Burry’s allocations to JD.com, BYD, and other related assets, but the actions of a single investor do not equate to a change in a company’s fundamentals.
Beginners can treat this update as a clue to one investor's positioning, rather than direct buy or sell advice; in particular, they should distinguish the risks of common stock, call options, and put options.
Risks and unknowns
The provided material does not include Michael Burry's original Substack post, so the specific portfolio adjustments cannot be independently verified.
The original text does not disclose the quantity, amount, execution price, or portfolio weight of each holding.
The original text does not specify the strike prices or exact expiration dates of the relevant options.
The actual impact of these adjustments on the prices of the related assets cannot be confirmed from the original text.
Related Developments
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The specific operational plan for “waiting for Alibaba to decline further” has not been disclosed.
Related concepts
Tax-loss harvesting
This term is not in the glossary yet. Browse related concepts in the glossary.
