Key Takeaways
- Michael Burry closed out his December 2026 put options on Nvidia and Palantir, choosing not to establish new positions
- The famed investor stated he reduced risk exposure in September and is comfortable maintaining cash reserves as he monitors autumn market conditions
- His top three long holdings continue to be Lululemon, Molina Healthcare, and MercadoLibre
- Oracle, Palantir, and Nebius remain at the top of his short portfolio, with Nvidia and the iShares Semiconductor ETF also among his largest bearish bets
- While Burry scaled back all positions throughout his portfolio, he indicated the relative sizing and order of his holdings remain intact
Michael Burry, the legendary fund manager who famously anticipated the 2008 subprime mortgage crisis, announced Wednesday that he’s reducing exposure throughout his investment portfolio.
In a Substack update, Burry revealed he decreased risk levels during September. The investor said he’s now maintaining a cash position that he’s “happy to sit on” as he observes market dynamics throughout the fall season.
His commentary included a notable observation: “This will be an interesting market this fall.”
Burry Abandons December 2026 Puts on Tech Giants Nvidia and Palantir
The investor completely closed his December 2026 put option positions on Nvidia and Palantir. According to Burry, the decision stemmed from concerns about accelerated theta decay affecting these contracts.
Notably, he chose not to establish replacement positions with later expiration dates. This indicates he no longer maintains those particular downside wagers.
That said, this doesn’t represent a complete abandonment of his pessimistic outlook. Burry continues to hold 2027-dated puts on Palantir and the Invesco QQQ Trust Series 1 ETF.
Additionally, he maintains short positions across multiple technology, semiconductor, and artificial intelligence stocks.
Market reaction saw Palantir shares decline 0.2% in morning trading following the disclosure. Nvidia stock experienced a 0.5% drop.
Retail investor sentiment on Stocktwits showed Palantir maintaining bearish territory. Meanwhile, Nvidia sentiment shifted from neutral to bearish.
Portfolio Structure Stays Consistent Despite Trimming
While Burry reduced his long exposure, he emphasized that the fundamental hierarchy of his holdings by position size hasn’t shifted.
Lululemon continues as his top long position, which he characterized as a “fat pitch” in recent commentary. Molina Healthcare and MercadoLibre maintain their second and third rankings respectively.
The complete roster of his long positions encompasses Zoetis, Sprouts Farmers Market, JD.com, Adobe, PayPal, Fiserv, Flutter Entertainment, Fannie Mae, Freddie Mac, Veeva Systems, and Build-A-Bear Workshop.
Regarding short positions, Oracle holds the distinction of being his largest bearish bet. Palantir and Nebius Group occupy the second and third spots. Nvidia and the iShares Semiconductor ETF complete his top five short positions.
Additional names in his short portfolio include Micron Technology, Caterpillar, and CoreWeave.
Burry scaled back these short positions proportionally while maintaining their relative order and avoiding complete exits.
He additionally noted he’s monitoring the Dollar Spot Index’s renewed decline and intends to discuss currency markets in an upcoming publication.
These strategic adjustments arrive as financial markets enter what Burry characterized as an “interesting” fall period, with the prominent investor opting to decrease exposure instead of establishing new positions currently.
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