Trading Post July 23, 2026 - 3 Stock Buys & the BIS Weighs in on AI's Rampant Circular Financing
Michael Burry
· Cassandra Unchained
· July 23, 2026 at 06:46
· ⏱ 1 min read
| Read on Substack ↗
Summary
Michael Burry argues that the crowded momentum pair trade (long winners, short losers) among multi-strategy hedge funds has created extreme valuations, and he is taking the opposite side by buying high-quality deep value stocks that are being sold off. He explicitly added to his long position in Tencent at HK$448.60, signaling conviction in Hong Kong stocks as a buying opportunity.
•The momentum pair trade, a staple of multi-strategy 'pod shop' hedge funds, has become extremely crowded and is reaching extremes.
•Burry added to his Tencent (0700 HK) position at HK$448.60 per share, calling it 'an all-time great compounder'.
•He characterizes his approach as effectively shorting the pod shops by going long deep value, and he sees Hong Kong stocks as a favorable area.
•The article references a prior post (July 8) showing a chart of the crowded trade extremes and another post (May 25) where he hides discussion of additional similar stocks.
Read time1 min
Length1,247 chars
Categoryfinance
Ideas
Michael BurryFounder, Scion Asset Management; subject of The Big Short
Burry is buying Tencent as a deep value compounder that is being shorted by the crowded momentum pair trade, effectively betting against the pod shops.