In the previous quarter, Michael Burry entered pessimistic positions by placing bearish bets against the S&P 500 and Nasdaq-100.
The investor famous for “The Big Short” also liquidated his holdings in Alibaba, First Republic, and a variety of other stocks.
During that timeframe, Burry’s Scion fund significantly increased its holdings in mining, shipping, and energy stocks.
During the previous quarter, Michael Burry made pessimistic investments against the S&P 500 and Nasdaq-100 indices. He also made strategic adjustments in his portfolio by exchanging his positions in Chinese e-commerce giants and troubled banks for investments in shipping, mining, and energy enterprises.
By the conclusion of June, the renowned investor known for his role in “The Big Short” had acquired put options linked to two exchange-traded funds: the SPDR S&P 500 and Invesco QQQ, both of which mirror significant index funds. This information was disclosed in a filing submitted to the Securities and Exchange Commission on Monday.
Furthermore, following his acquisition of discounted banking stocks in the initial quarter, Burry made the decision to divest from Capital One, First Republic, PacWest Bancorp, Wells Fargo, and Western Alliance.
Scion Asset Management, led by the investor, also took measures to divest from two prominent Chinese internet giants, namely Alibaba and JD.com. In contrast, the firm opted to include Crescent Energy, Comstock Resources, Precision Drilling, Star Bulk Carriers, and Stellantis among its holdings.
Interestingly, only a select few positions weathered the period’s changes. These included the Geo Group, Liberty Latin America, New York Community Bancorp, Signet Jewelers, Cigna Group, and The RealReal.
Despite the significant adjustments in its holdings, Scion’s overall portfolio value remained relatively stable at $111 million, excluding options.
Burry catapulted to fame through his monumental wager against the housing bubble of the mid-2000s, a saga immortalized in the book and film “The Big Short.” His reputation further solidified as he ventured into prescient moves like betting on GameStop before it gained meme stock status. Notably, he also undertook short positions against both Elon Musk’s Tesla and Cathie Wood’s flagship Ark Innovation fund in more recent times.
Beyond these accomplishments, the head of Scion Asset Management is renowned for his somber alerts regarding asset bubbles and his rather bleak forecasts of significant market downturns. Staying true to his characteristic style, he succinctly proclaimed “Sell” at the conclusion of January. However, he later acknowledged his misjudgment in stating “sell” in March and has maintained a low profile on social media in recent months.