Burry Scales Back Exposure, Raises Cash Ahead of Eventful Fall Period

Michael Burry has scaled back his market exposure and raised cash ahead of what he expects to be an eventful period for stocks this fall. He reduced every position in his portfolio during September, including closing put options expiring in December 2026 on Nvidia NVDA and Palantir Technologies PLTR.

Burry said that he did not replace these contracts with ones carrying later expiration dates, which reduces the amount of capital he has directly committed to betting against the two prominent artificial-intelligence stocks. Put options generally increase in value when their underlying securities decline.

Despite exiting those contracts, Burry's overall bearish view on the AI trade remains intact. Palantir remains his second-largest short position, while Nvidia ranks fourth. Oracle is still his largest short holding, followed by Palantir and Nebius Group. Nvidia and the iShares Semiconductor ETF complete his five biggest bearish positions.

The investor said that the reductions left him with additional cash, which he is content to hold while waiting for greater clarity. He predicted that markets would become particularly interesting during the fall, suggesting that the retreat reflects caution rather than a decisive shift toward optimism.