'Big Short' Investor Michael Burry's Equity Bets Reap Rewards As S&P 500, Nasdaq Plunge

Renowned investor Michael Burry’s earlier bets against the S&P 500 and Nasdaq have hit the mark as the two indices suffer a sharp sell-off.

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By the end of Q2, Burry’s management fund Scion was holding put options on two ETFs — SPDR S&P 500 and Invesco QQQ — that track these major index funds. Since then, the S&P 500 and Nasdaq have dropped approximately 8% and 9%, respectively.

Why It Matters: As the Scion head, Burry has frequently expressed concerns about stock bubbles. He once hinted at the S&P 500 bottoming out at around 1,900 points. However, he confessed to a misstep this year when he advised to “sell” ahead of a bull-market run in late January.

As of Oct. 27, both the S&P 500 and the Nasdaq are experiencing considerable corrections, aligning with Burry’s earlier predictions.

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Illustration by Gonzalo Lanzilotta for Benzinga

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