Michael Burry outlined how he is positioning his portfolio for the fourth-quarter tax-loss harvesting season, highlighting six stocks that stand out as likely tax loss sale candidates that may not do well over the next couple of months. In his October 5th Substack post, Burry said the fourth quarter is tax loss harvesting season and that he tries to beat the rush, which arrives near the end of October and peaks in the first week of December. As part of a "proxy swap" trade, he established a new position in Deckers Outdoors while temporarily replacing his losing position in lululemon athletica with an undisclosed amount of Deckers Outdoors shares, retaining his long-term conviction in lululemon. He fully exited Fannie Mae and shifted the capital into Freddie Mac to capture the tax loss while maintaining sector exposure, planning to reverse the trade next month, and he is holding Fiserv through the volatility, saying its current valuation offers low-teens annualized return potential over the long term. In Sprouts Farmers Market and Zoetis, he replaced direct holdings with far-out-of-the-money LEAP calls expiring in 2028 and 2029 after both stocks hit new lows, while for MetLife he added long-dated 2029 out-of-the-money put options, citing potential stress in private credit and private equity valuations. Separately, Burry established a sizable position in BYD following a price pullback and added far-out-of-the-money 2029 call options on JD.com, but is not adding fresh capital to Alibaba, citing concerns over recent equity issuances used to fund the company's AI infrastructure buildout.
Jd Com Inc
Deckers Outdoor Corporation
Lululemon Athletica Inc.
Alibaba Group Holding Ltd
Fiserv, Inc.
MetLife Inc
Sprouts Farmers Market LLC
Zoetis Inc