Michael Burry Shorts Caterpillar for the First Time After Stock Surge
Big Short investor Michael Burry has initiated a short position in Caterpillar after the stock nearly doubled during the AI-driven rally of 2026.
Michael Burry, the investor made famous by his prescient bet against the 2008 housing market, has disclosed a short position against Caterpillar for the first time in his career, targeting the industrial giant after its stock nearly doubled amid the AI-driven market rally of 2026. The move marks a sharp reversal from Burry's historically bullish stance on the heavy-equipment maker.
"Caterpillar jumped out at me," Burry said in explaining the trade. "I have never shorted Caterpillar. It has always done great for me on the long side in the past." The candid admission underscores how dramatically the stock's valuation shifted during the AI-fueled surge that lifted industrial and infrastructure names alongside technology plays.
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Burry's decision to bet against a company he previously favored signals his belief that Caterpillar's near-doubling in price has outpaced underlying fundamentals — a classic setup that the Scion Asset Management founder has targeted throughout his career. While AI infrastructure spending has driven demand expectations for heavy machinery and construction equipment, Burry appears unconvinced the rally's pace is sustainable.
The short call carries meaningful risk given Caterpillar's durable earnings history and its role as a bellwether for global economic activity. Still, Burry's track record of contrarian calls — most notably his 2007 mortgage-securities trade immortalized in "The Big Short" — commands attention on Wall Street whenever he takes a public position against a widely held name.
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