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With Burry as adviser, a new short-focused fund takes aim at private credit risks

The fund will scan healthcare, retail, restaurants and smaller banks for short targets as U.S. private credit default rates hit 6.3%, Fitch Ratings said.

Summary by WTVB
By Johann M Cherian and Jayasree Prabhu Sept 28 (Reuters) - Wall Street is busy scouring AI stocks for signs of a bubble, but a new hedge fund tied to famed short seller Michael Burry is coming to the market eyeing more consequential warnings ​of risin...

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Michael Burry has increased his investment intensity by switching his short positions to put options in anticipation of a decline in AI-related stocks. This is based on the judgment that the collapse of the AI bubble is imminent, and he forecasts that a turning point in the market will occur between June and September of next year.

Investor Michael Burry exchanges positions sold in AI shares for sales options and anticipates the deadline of his pessimistic thesis on the sector

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WTVB broke the news on Monday, September 28, 2026.
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