Michael Burry doubles down on beaten-down China tech

The man who predicted the 2008 housing crash is making another contrarian call, and this time his sights are set on China.

Hedge fund manager Michael Burry, who became famous after the film "The Big Short" chronicled his bet against subprime mortgages, revealed on Thursday, June 25, that he added to his JD.com position at $24.79 per share.

According to a StockTwits report, Burry also bought Microsoft December 2028 LEAP calls and added to stakes in Adobe and Fiserv.

But it's the China trade that is raising eyebrows.

Burry laid out his thinking in a Substack post, arguing that the recent sell-off in Chinese and Hong Kong stocks has very little to do with business fundamentals.

Burry's core argument is that capital is simply rotating out of Hong Kong and China for reasons unrelated to how these businesses are performing.

"Hong Kong stocks are falling hard as the chip narrative pulls capital from Hong Kong and pushes it into South Korea and Japan," he wrote in his Substack post.

Momentum traders and large Asian-focused funds are reallocating quickly, he explained, making the move more self-reinforcing than it is fundamentally driven.

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Fuente original: Yahoo Finance (https://finance.yahoo.com/markets/stocks/articles/michael-burry-doubles-down-beaten-174700568.html)