This time, investor and manager Michael Perry is betting that the broad stock indices will crash.
According to reports from Burry’s fund, Scion Asset Management, it has bought contracts that will turn a profit if the S&P 500 and Nasdaq 100 indices fall. On social media, there has been speculation about whether the jobs could reach $1.6 billion, which equals about 17 billion Norwegian kroner.
Bloomberg writes Monday evening The size may be much smallerand that the volumes reflect the underlying positions, and not the actual stake in the bet that will depend on the contract prices.
The distribution between the two investments should be relatively even, presumably because Scion Asset Management bought contracts that show Scion the developments in two other funds that mirror the Nasdaq 100 and S&P 500, respectively. But Scion has bought contracts that give the right to sell positions at a certain time, and Scion will then profit from the difference between the points the indices earned when the contracts were entered into and the point levels they might have when the contracts expire.
In the same way, the fund will lose if the indices are raised from their current levels.
Given the evolution of the market, Burry is not alone in putting himself in a position to take a hit in the stock market. Chief economist Stein Brun told DN Monday night:
US stocks have historically high prices.
Short Scion positions may have been entered at the end of the second quarter, i.e. in June, and it wasn’t long before the Nasdaq hit its peak for the year in July. By then, the index had risen about 45 percent since the new year, and was just a few percentage points off the top list as of the end of 2021.
The Nasdaq 100 moves a few individual stocks that make up a large percentage. Among them are Apple, Microsoft, Meta and Tesla.
became “Big Short”
Michael Lewis has been dubbed “The Big Short” by author Michael Lewis, who after the financial crisis wrote a book about Burry and how he bets money that debt securities will fall in value. The bonds contained mortgages, packaged in a whimsical way, and the values turned out to be so inflated that the debtors could not or could not settle. But with time running out, Bree’s own chest was about to run out. The book was later made into a movie.
Scion Asset Management reportedly had several bold short positions, many of which may have ended in losses. The investments that became known on Monday are somewhat different as the information comes from official sources. However, the information was not commented on by Scion Asset Management.(conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We’d like you to share our statuses using links that lead directly to our pages. Reproduction or other use of all or part of the Content may be made only with written permission or as permitted by law. For more terms see here.
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