Burry's Bearish Bets Face Pressure as AI Stocks Rally

Michael Burry's August stock picks saw mixed results as he continued his bearish stance on AI favorites. The famous investor from 'The Big Short' purchased undervalued, out-of-favor securities while shorting highly valued momentum stocks.

In a strategy dubbed 'brutally euphoria-truculent stocks,' or BETS, Burry longed Adobe, Temple & Webster, Zoetis, Lululemon Athletica, and Molina Healthcare. He added to Fiserv, Freddie Mac, MercadoLibre, and Sprouts Farmers Market in the following week.

Among his tracked holdings, nine rose while eight fell. Veeva Systems led the winners with a 35.8% surge, followed by Adobe's 16.4% gain and MercadoLibre's 4.7% advance.

Burry also shorted Palantir Technologies, Nvidia, Oracle, Micron Technology, Nebius Group, and SOXX shares. His bearish bets faced a tough market as AI stocks rallied earlier in the month, with Palantir surging 51.4%, CoreWeave climbing 17.4%, and Oracle rising 16.2%.

Burry's short positions included Micron at $924, Nebius at $247, SOXX at $541, and Palantir at $175. Timing helped his bets as Nebius closed below his later short entry of $247, while Micron ended near the lower end of Burry's short range.

Burry adjusted his portfolio by raising cash and lowering exposure in response to his short book tipping into a loss. He sold SOXX puts and replaced them with QQQ put options, increasing the position size to 6% of his portfolio.