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Michael ‘The Big Short’ Burry bets big on stock market downturn

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Michael Burry, famed for his winning wagers against the US housing market ahead of the 2008 global financial crisis and subsequent appearance in ‘The Big Short’ book and film, is betting on a downturn in the US stock market, according to a report by Market Insider.

The report cites the latest 13-F regulatory filings as revealing that Burry’s hedge fund firm, Scion Asset Management, has placed bets worth over $1.6bn against both the S&P 500 and Nasdaq 100 Index.

As of the end of June, the fund held bearish put options on 200,000 shares of the SPDR S&P 500 ETF Trust – an exchange-traded fund that tracks the benchmark US stock index – as well as puts on 200,000 shares of the Invesco QQQ Trust, which tracks the tech-heavy Nasdaq-100.

The put options, which give Scion the right to buy the ETFs at a predetermined price in the future, are significant in that they represent over 90% of the firm’s portfolio.

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