Michael Burry added to bets on Chinese stocks last quarter

Michael Burry added to bets on Chinese stocks last quarter — but there’s a catch

The famed investor upped his stakes in Alibaba, Baidu and JD.com, but also protected his downside with put options

Michael Burry, the hedge-fund investor made famous by Michael Lewis’s book “The Big Short,” upped his bets on Chinese stocks during the third quarter — but he’s also making sure to protect his downside. 

Burry’s Scion Capital Management bought 45,000 shares of Alibaba Group Holdings Ltd. BABA -1.54%,  the U.S.-traded ADRs of the Chinese e-commerce giant, during the third quarter, raising the size of his stake to 200,000 shares, according to a filing released on Wednesday.