Michael Burry Increases Chinese Tech Investments with Cautious Hedges

The renowned investor expands stakes in Alibaba, JD.com, and Baidu while employing protective measures to mitigate risks.

Michael Burry's Scion Asset Management significantly boosted investments in Chinese tech stocks, making Alibaba, JD.com, and Baidu its largest holdings.
Burry's firm has implemented put options as a hedge against potential declines in these stocks, reflecting a cautious approach amid market volatility.
Alibaba's stake increased by 29% to 200,000 shares, with similar increases in JD.com and Baidu, alongside corresponding bearish options.
The investments align with China's recent economic stimulus efforts, which initially spurred a rally in Chinese equities before gains moderated.
Burry's moves are closely monitored due to his reputation from the 2008 financial crisis prediction, though his active trading style suggests positions may have changed since the last reporting.