Investor Michael Burry sold his December 2026 put options on Nvidia Corp. (NASDAQ:NVDA) and Palantir Technologies Inc. (NASDAQ:PLTR) as he pulled back on portfolio risk. Separately, the “Big Short” investor has outlined a bullish thesis for bonded European fine wine as a potential hedge against dollar debasement and technological disruption.
‘Shorting the Dollar’ Through Real Assets
Following his options reshuffle, Burry outlined a macro investment thesis focused on physical holdings, specifically “bonded fine wine,” as an alternative to paper currency and digital claims.
Writing in his Substack publication, “Shorting the Dollar by Drinking Free First Growth Bordeaux,” Burry asserted that “just about every single case of fine wine sitting in a London bonded warehouse can be a short position on the U.S. dollar.”
He pointed to the 25%-30% decline in fine-wine indices from their 2022 peak as an attractive entry point.
The ‘Three-Legged Dog’ Framework
Burry framed his wine thesis around what he calls a ‘three-legged dog’ approach to investing.
Burry wrote, “I demand at least three legs and preferably five legs under every investment I make. Else that dog don’t run.”
He explained that fine wine possesses a bullish dynamic of “supply destruction” as bottles are consumed over time. Furthermore, Burry cautioned that digital holdings face threats from artificial intelligence and quantum computing, making physical assets vital in a “cyberpunk future that looks possibly scarier than William Gibson had imagined.”
Exiting Short-Term Tech Bets
Burry liquidated his December 2026 bearish options on Nvidia and Palantir while retaining longer-dated 2027 put options on Palantir and the Invesco QQQ Trust (NASDAQ:QQQ).
The position changes follow Burry’s prior critiques of Palantir’s financial health, where he stated, “Palantir is losing bargaining power and channel stuffing. The former is a weak business position; the latter, a crime.” He also trimmed other holdings across his portfolio to reduce overall market exposure.
How To Track Wine Markets?
There is no mainstream U.S.-listed pure-play fine-wine ETF. Burry tracks his thesis through the Liv-ex Fine Wine 100 and Liv-ex Bordeaux 500 indices.
As per the Liv-ex website, the Liv-ex Fine Wine 100 index has risen 1.1% year-to-date, 4.4% over the year, and 0.7% over the month. Liv-ex Bordeaux 500, on the other hand, fell 0.2% ytd, rose 0.4% over the year, and 0.2% over the month.
Investors seeking publicly traded exposure to the broader wine industry can look to companies such as Constellation Brands Inc. (NYSE:STZ) or French Champagne producer Laurent-Perrier, although neither offers direct exposure to fine-wine prices.
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