Famed investor Michael Burry, known for calling the subprime mortgage crisis, exited all of his existing holdings at the end of the second quarter, according to a new regulatory filing. “The Big Short” investor sold out all 11 of his equity positions last quarter, including Meta, Alphabet, Warner Bros. Discovery, Global Payments and Bristol-Myers Squibb, showed the presentation. He also exited his short bet against Apple in late June. Burry added one stock: $3.3 million from GEO Group last quarter, the filing showed. The investor has been in and out of this private prison operator over the past two years. GEO shares rose more than 8% on Monday, cutting its 2022 losses to 5%. Still, Burry’s strong portfolio sales perhaps convey just how bearish the market is. The investor, who now runs hedge fund Scion Asset Management, has been expressing his pessimistic views on markets and the economy on Twitter. More recently, Burry warned that “addictive” consumer spending is signaling more trouble ahead, even as economic data showed signs of improvement. It suggested that consumers were still splurging on goods and services at a time when inflation remained at a multi-decade high. In May, he drew parallels between today’s market environment and that of 2008, saying it’s like “watching a plane crash.” Burry had also sounded the alarm about massive earnings compressions. Burry rose to fame betting against mortgage-backed securities before the 2008 crisis. Burry was featured in Michael Lewis’ book “The Big Short” and the subsequent Oscar-winning film of the same name. Because the filings reflect only one stake, it’s unclear whether Burry is accepting low stakes in other ways that won’t show up in these quarterly reports. Burry could be applying short positions or using sophisticated derivatives.
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