In a move that surprised the investing world, renowned investor Michael Burry opened a new bearish position in the third quarter.
Notably, the most recent securities filings revealed Burry’s move against the entire US semiconductor sector, marked by his acquisition of put options linked to SOXX, a major semiconductor exchange-traded fund (ETF).
But before entering this position, Burry closed his previous bearish stance on the S&P 500 and Nasdaq 100, incurring a notable loss.
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His Nasdaq 100 short turned out particularly bad as the tech-heavy index continued to thrive amid the ongoing artificial intelligence (AI) frenzy.
Which stocks caused Burry’s loss?
On Thursday, November 23, widely followed stock news X account StockMKTNewz posted a 2023 heat map of the Nasdaq 100, demonstrating the year-to-date performance of the index’s constituents.
Remarkably, the first thing one may notice when looking at the map is that it is quite green.
In other words, it shows that the vast majority of Nasdaq 100 stocks are performing incredibly well this year, with some of them even recording triple-digit gains.
The index’s best performer is Nvidia (NASDAQ: NVDA), skyrocketing more than 230% year-to-date. The chipmaking giant continues to thrive in the current AI revolution thanks to unprecedented demand for its high-end chips.
Facebook owner Meta Platforms (NASDAQ: META) also witnessed triple-digit returns, surging more than 180% this year. Alongside the AI boom, META’s rebound was also boosted by a strong recovery in its digital ad business.
Other major tech players, including global giants like Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), Tesla (NASDAQ: TSLA), and AMD (NASDAQ: AMD), all recorded substantial gains ranging from 57% to 90%.
The aforementioned companies are the key drivers of the Nasdaq 100 index, which as a whole, surged over 47% year-to-date. As such, these are the stocks that effectively obliterated Michael Burry’s now-closed bearish bet.
According to analysts’ estimates, the investor’s two positions, against both the S&P 500 and Nasdaq 100, were closed at a 40% loss.
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