Michael Burry is pushing back against Palantir (PLTR) chief Alex Karp, escalating a public clash after the software CEO suggested that the “Big Short” investor attempted to manipulate markets.
Last week, reports emerged that Burry’s Scion Asset Management had placed $912.1 million worth of put options on PLTR, representing five million shares. Burry’s put options appear to be a speculative bet that PLTR will collapse.
Following the news, Karp alleged that Burry was engaging in market manipulation tactics to get out of a much larger short position.
In a new post on X, Burry responds, saying Palantir’s intelligence ambitions fall short if its leader cannot interpret a basic regulatory filing.
“Doesn’t surprise me one bit that Alex Karp and his ‘ontology’ Palantir Tech cannot crack a simple 13F.”
Burry adds that Karp’s allegation is a failure of basic analytical standards, noting that Palantir’s leadership made a conclusion without adequate data.
“A fundamental principle of any rigorous ontological/epistemological model — whether philosophical or in data science – is recognizing when your information set is insufficient for valid conclusions.”
Meanwhile, fellow “Big Short” investor Steve Eisman gave his two cents on Burry’s PLTR short positions. He said that based on experience, shorting a fundamentally strong company tends to lead to a catastrophic outcome.
“I have found over the years that shorting the stock purely on valuation is usually a recipe for disaster unless you catch a correction just right, which is incredibly difficult. In a bull market, shorting great stories because of high valuations is something I just don’t do.
I’ve learned that hard lesson too many times to try doing it again.”
Disclaimer: Opinions expressed at CapitalAI Daily are not investment advice. Investors should do their own due diligence before making any decisions involving securities, cryptocurrencies, or digital assets. Your transfers and trades are at your own risk, and any losses you may incur are your responsibility. CapitalAI Daily does not recommend the buying or selling of any assets, nor is CapitalAI Daily an investment advisor. See our Editorial Standards and Terms of Use.