Who is Michael Burry and why did he sell all but one stock?

Burry had taken a knife to his portfolio in the past as well.  He slashed the portfolio from 20 holdings to six in the third quarter of last year, reducing its value from $140 million to $42 million.

Michael Burry is best known for being one of the first investors to foresee and profit from the US subprime mortgage crisis that occurred between 2008 and 2010. He has been profiled in the book ‘The Big Short,’ by Michael Lewis about the mortgage crisis, which was made into a movie where Christian Bale played Burry’s character. He made a great deal of money for his investors and himself during that time, then took several years off and now has been back for some time.

Burry is also known for betting against Elon Musk's Tesla and Cathie Wood's Ark Innovation fund last year and for investing in GameStop before it became a meme stock.

Burry took to Twitter to say that the 18 percent gain in the tech-heavy Nasdaq Composite Index (.IXIC) since the start of the third quarter is likely to reverse. Burry deletes his tweets frequently.

The close followers of Burry interpret his decision to liquidate his portfolio as a bad omen, reported the Business Insider. The hedge-fund manager diagnosed a speculative bubble last summer and he said the owners of meme stocks and cryptocurrencies are moving toward the ‘mother of all crashes.’

Recently, he also told investors not to get too excited about the recent rally in stocks as previous downturns have seen many temporary rebounds before spiralling. He wrote on Twitter, that he “can't shake that silly pre-Enron, pre-9/11, pre-WorldCom feeling” referring to three events that led to an approximate fall of 75 percent in the Nasdaq between February 2000 and September 2002, Reuters reported.

As per the SEC filing, Burry’s firm has just one stock holding at the end of the second quarter. Scion held 501,360 shares of the Geo Group Inc. The group invests in private prisons and mental health facilities and has a market capitalisation of less than $900 million.

The Florida-based company is a leading provider of enhanced in-custody rehabilitation, post-release support, electronic monitoring, and community-based programs, according to its website.