Stocks Shorted

Palantir and Nvidia stocks fell on Tuesday after Michael Burry – of “Big Short” fame – disclosed a $912M bet against the companies.

Context

Burry gained prominence as a hedge fund manager by betting against the housing market ahead of its 2008 collapse, a story chronicled in Michael Lewis' book "The Big Short," which was later adapted into a film. His successful prediction during the financial crisis enriched his investors and made him a cult figure in the online investment community. Since then, both Palantir and Nvidia benefited from a historic investment boom around artificial intelligence, with their stock prices surging about 150% and 45%, respectively, since the start of the year.

SEC Filings

A Securities and Exchange Commission filing covering a period up to September 30 and made public on Monday showed that Burry's firm held “puts” on Nvidia and Palantir – a way to bet that stock prices will fall in the future.