Michael Burry, a former American hedge fund manager and investor known as ‘The Big Short,’ has revealed some new stock portfolio updates, doubling down on his bearish outlook.
As revealed in an August 4 Substack post, Burry exited his long position in Microsoft (NASDAQ: MSFT), closed his short position in Oracle (NYSE: ORCL), and covered his January 2026 short on Palantir (NASDAQ: PLTR).
Furthermore, he rolled his Nvidia (NASDAQ: NVDA) short position to June 2027 and extended his short on the Invesco QQQ Trust ETF (NASDAQ: QQQ) to February 2027.
Currently, the investor also continues to hold short positions in the iShares Semiconductor ETF (NASDAQ: SOXX), Micron (NASDAQ: MU), Caterpillar (NYSE: CAT), and Tesla (NASDAQ: TSLA).
Michael Burry warns we’re heading toward a new 1987 sell-off
Alongside his updated positions, Burry also took the opportunity to warn that the market could still be heading toward a crash similar to the 1987 sell-off despite the S&P 500 climbing to fresh record highs.
“I continue to believe it is possible we are near a major top, and possibl[y] a 1987-type fall, but the S&P 500 making new highs likely will bring new money into the market,” Burry wrote.
His warning came as the S&P 500 gained 1.9% and posted its first record close since June, supported by stronger-than-expected corporate earnings and lower oil prices.
The tech-heavy NASDAQ Composite also surged 2.7%, but Burry remains among the most vocal critics of the artificial intelligence (AI) rally, arguing that spending on the new technology is driven by financing arrangements that are far from sustainable.
“Remember, the market going up on falling volatility forces vol-targeting funds to leverage up, and brings leverage from other momentum strategies into play,” he added.
Overall, Burry remains confident in the long-term profitability of his trades, with all of the shorts remaining sound except for his bet against Nvidia.