Key Takeaways:
Michael Burry, the hedge fund manager known for betting against subprime mortgages before the 2008 financial crisis, bought long-dated call options on Microsoft Corp., added stakes in JD.com Inc. and Adobe Inc., and covered half his short position in Palantir Technologies Inc., according to a Substack post Thursday.
"The results validate our AI strategy," Burry said, attributing the moves to his view that markets are being driven by technical pressure rather than fundamentals. He said global capital flows are hitting Asian markets hardest as funds rotate across regions chasing semiconductor exposure, pulling capital from Hong Kong into South Korea and Japan.
Burry bought Microsoft December 2028 LEAP calls with strike prices in the low $700s, signaling a multi-year bullish view. He said the $350 level for Microsoft shares represents a good entry point and that the LEAPs appeared "inexpensive" relative to his long-term outlook. Microsoft shares have fallen 27% year-to-date.
He added to JD at $24.79, Adobe at $195.11 and Fiserv Inc. at $47.55, while selling Alibaba Group Holding Ltd. for tax-loss reasons with plans to eventually repurchase the shares. Burry said he may also add Meituan and Tencent, noting these names tend to move together in the short term.
On Palantir, Burry covered half his short position at $107.15 but continued holding puts, maintaining downside exposure. Palantir shares have declined 42% year-to-date.
Burry described the selling pressure on Hong Kong equities as "largely technical pressure, not fundamental," adding that the shift is visible in the charts of the Hang Seng, Japanese TOPIX and Korean KOSPI. He said the technical adjustment is pushing leading Chinese companies near their lows again, driven by market mechanics rather than weakening businesses.
Year-to-date, all stocks mentioned by Burry are trading lower. JD is down nearly 13%, Adobe has fallen 45% and Fiserv is down 29%. Alibaba has lost 35%.
The portfolio moves suggest Burry sees selective value in US tech names while maintaining caution on high-multiple stocks. Investors will watch his next 13F filing for further positioning changes.
This article is for informational purposes only and does not constitute investment advice.
