Burry steps back from his technology bets

Michael Burry, founder of Scion Asset Management and best known for profiting from his short of the mortgage market in 2008, has made a notable portfolio adjustment in September 2026. According to Seeking Alpha, he has unwound his bearish bets against both Nvidia and Palantir Technologies in the form of December 2026 put options — and has chosen not to roll them into new contracts with longer maturities.

Burry has stated that he now prefers to hold cash and is, as he puts it, "happy sitting on it" while he observes how the market develops.

Burry is happy sitting on cash and watching from the sidelines — a rare signal from an investor who has historically been active on both sides of the market.
Burry folds: Exits Nvidia and Palantir bets - Bilde 1

What does he still hold — and what has he sold?

Although Burry has reduced risk broadly, he is far from out of the picture. According to the research material tied to the Seeking Alpha report, he is retaining 2027 puts on Palantir and the Invesco QQQ Trust (QQQ), indicating that his long-term bearish conviction on certain technology stocks remains intact.

He has also closed his short positions in Tesla (TSLA) and Applied Materials (AMAT).

On the long side, the picture is more nuanced:

It is worth noting that the figures in the research material vary somewhat depending on the reporting date, and that portfolio size and composition may have shifted rapidly. Scion Asset Management's official 13F filings with the SEC should be consulted for precise figures.

Burry folds: Exits Nvidia and Palantir bets - Bilde 2

The short book has grown — not disappeared

Despite the overall reduction in risk, Burry's short book has actually grown in relative terms. The heaviest short positions are now Oracle (ORCL), Palantir (PLTR), and Nebius (NBIS), followed by Nvidia and the iShares Semiconductor ETF (SOXX).

21%+
Short book's share of the portfolio
17%
Lululemon's share of the portfolio

The fact that the short book represents more than 21 percent of the total portfolio — excluding QQQ puts — signals that Burry is not broadly bullish on the market, even as he selectively initiates new long positions.

Technology stocks still in the crosshairs

The consistent thread running through Burry's strategy is skepticism toward highly valued, AI-driven technology stocks. Nvidia and Palantir have both been central to the AI euphoria that has characterized equity markets in recent years. His decision to unwind the December options without renewing them can be interpreted in two ways: either he believes the near-term catalyst for a decline is no longer in place, or he simply wants to reduce complexity during a period of heightened uncertainty.

Both interpretations are valid, and the Seeking Alpha report does not provide a clear-cut answer on his motivation.

Burry is holding his Palantir puts all the way into 2027 — the bet against the AI bubble is not over, merely deferred.

What does this mean for the market?

Burry's moves are closely watched by the investment community, largely because of his track record of early and accurate market calls. It is nevertheless important to note that Scion Asset Management is a relatively small fund, and individual moves do not necessarily have a direct impact on markets.

The fact that a well-known contrarian is choosing to sit on cash in a market where the crypto Fear & Greed Index stands at 69 and risk appetite is broadly elevated is in itself a signal worth noting — but should not be read as a guaranteed prediction of an impending downturn.