Michael Burry Bought Beaten-Down Stocks And Shorted AI Favorites — Here’s How His August Bets Fared
Michael Burry, known for his 'Big Short' bet, disclosed August trades including long positions in MercadoLibre (MELI), Zoetis (ZTS), Lululemon (LULU), and Molina Healthcare (MOH), and short positions in Palantir (PLTR), Nvidia (NVDA), and others. Nine of his 17 long holdings rose, with Veeva (VEEV) up 35.8%, while his short bets faced pressure as AI stocks rallied, with Palantir up 51.4%. Burry adjusted his portfolio, raising cash and managing risk.
How this was made
The 30-second read
Why it matters
The disclosed trades provide insight into Burry’s valuation framework and may guide traders seeking contrarian exposure.
Market read
Burry’s mixed results underscore the risk‑reward balance between value and AI growth stocks, offering potential trade ideas for both sides.
What to watch
Potential macro‑economic slowdown could further depress AI‑heavy stocks, enhancing Burry’s short thesis.
Background
Michael Burry’s August portfolio adjustments are detailed, showing both long bets on beaten‑down stocks and short positions against AI‑centric names.
Ticker impact
Burry disclosed a purchase of MercadoLibre in August, adding to his long portfolio.
Potential modest upside if market sentiment improves.
Burry's buying indicates value view, but stock only up ~4.7% in month.
Burry disclosed purchases of Zoetis as part of his beaten‑down long list.
Likely modest upside if earnings stay strong.
Zoetis rose after Burry's entry, supporting his thesis.
Burry added Lululemon to his long book, eventually making it 17.4% of his portfolio.
Potential upside if recent recovery continues.
Burry's sizable stake signals conviction despite volatility.
Burry bought Molina Healthcare as part of his value bets.
Limited upside unless sector improves.
Small price move suggests limited immediate catalyst.
Burry opened and added to a short position in Palantir during August.
Short likely to stay unprofitable unless reversal.
AI rally pushed Palantir higher, hurting Burry's short.
Burry shorted Nvidia and later bought call options to hedge.
Short remains pressured; potential loss if rally continues.
AI hype lifted Nvidia despite Burry's bearish stance.
Burry opened a short on Oracle on Aug. 6 and added to it later.
Short likely to stay underwater unless pullback.
Rising AI demand boosted Oracle, counter to Burry's view.
Burry shorted Micron Technology and later increased the short.
Short may face losses unless price corrects.
AI demand lifted memory chip stocks.
Market effects
Highlights continued divergence between beaten‑down value stocks and AI‑driven growth names.
US equity market sentiment may tilt toward value as high‑profile AI stocks rally.
Burry's contrarian stance may influence other value‑focused investors worldwide.
Counterpoint
Burry’s bearish AI bets could be vindicated if AI hype cools, offering upside to his short positions.
Key entities
- individualMichael Burry
Investor known for value‑oriented bets, disclosed portfolio moves.
