Michael Burry Discloses 3.5% Stake in PayPal, Eyes Positions in Salesforce and MSCI

Famed investor Michael Burry revealed a roughly 3.5% position in PayPal and plans to add positions in Salesforce and MSCI early Thursday. Burry maintains holdings in Fiserv, Adobe, Autodesk, and Veeva Systems, all companies he said do not rely on private credit markets.

He emphasized that none of the companies in his portfolio, including PayPal, Salesforce, and MSCI, depend on private credit financing. Retail investors have been withdrawing funds from a group of private credit funds over the past couple of months, many of which held loans tied to software companies.

Burry noted a reflexive positive feedback loop between falling equity prices and stress in bank debt linked to software companies, which accelerated their declines.

The iShares Expanded Tech-Software Sector ETF has slumped about 28% from its September peak and has entered a bear market, reflecting broader sector weakness. Burry indicated no similar risks for his holdings based on his analyses, while the broader software sector faces ongoing challenges from private credit stress.

“I do not see this for my selected companies and a good number of others, all of which I have just about finished analyzing forensically, competitively, and fundamentally as to investment potential.”