Michael Burry Latest Investment: In a surprising turn, Michael Burry, renowned for his foresight in shorting subprime mortgages during the 2008 financial crisis, has shifted gears in his investment strategy. Burry, made famous by his portrayal in the movie “The Big Short,” closed out his bearish positions against the S&P 500 and the Nasdaq 100 in the third quarter. The put positions on SPDR S&P 500 ETF (SPY) and Invesco QQQ Trust (QQQ) amounted to over $1.6 billion as of the last trading day of the second quarter, and both indexes experienced declines of 3.6% and 3%, respectively, during the third quarter.
However, Burry hasn’t abandoned his bearish outlook entirely. His hedge fund, Scion Capital, revealed in a recent SEC filing that it initiated new short positions, targeting the semiconductor industry. Notably, Scion shorted 100,000 shares of BlackRock‘s semiconductor ETF, the iShares Semiconductor ETF (SOXX). This move aligns with a broader trend, as the third quarter saw a reduction in the hedge fund’s exposure to the stock market, with a significant 76% reduction in disclosed stock holdings.
Despite this overall reduction, there were interesting shifts in Scion’s portfolio. The hedge fund reopened positions in JD.com and China’s tech giant Alibaba (BABA) after exiting these holdings in the second quarter. On the flip side, Scion decided to eliminate its remaining exposure to regional lender New York Community Bank (NYCB), following a chaotic first quarter marked by substantial bets on financial stocks.
In a continuation of his bearish stance, Burry opened another new short position, this time targeting online travel website Booking Holdings Inc. (BKNG) with 2,500 shares. Simultaneously, Scion outright purchased 1,500 shares of Booking Holdings Inc.
This strategic realignment suggests that while Burry has adjusted some of his previous bearish positions, he remains committed to shorting certain sectors, particularly the semiconductor industry and specific stocks like Booking Holdings Inc. It will be intriguing to see how these moves play out in the coming quarters and whether they signal broader shifts in Burry’s investment outlook.
Also read: Japan Economic Hurdles: Growth Stumbles Amidst Consumption Woes and Global Headwinds”
Our Reader’s Queries
What are Michael Burry’s current investments?
As of September 30th, 2023, Michael Burry’s top 5 holdings in his portfolio are STELLANTIS NV (STLA) at 17.43%, NEXSTAR MEDIA GROUP INC-CL A (NXST) at 15.89%, STAR BULK CARRIERS CORP (SBLK) at 10.98%, BOOKING HOLDINGS INC (BKNG) at 10.54%, and ALIBABA GROUP HOLDING-SP ADR (BABA) at 9.88%.
What is Michael Burry shorting?
Burry is known for his short-trading strategies in the stock market, where he frequently employs put options. These options enable the buyer to sell a predetermined amount of an asset (such as an ETF) at a set price before the option’s expiration date.
What is Scion invested in?
Scion Asset Management, LLC’s portfolio is dominated by iShares Trust – iShares Semiconductor ETF (US:SOXX), Booking Holdings Inc. (US:BKNG), Stellantis NV (NL:STLA), Nexstar Media Group, Inc. (US:NXST), and Star Bulk Carriers Corp. (US:SBLK). These top holdings reflect the company’s investment strategy and commitment to diversification. With a focus on high-performing industries and companies, Scion Asset Management, LLC is well-positioned to deliver strong returns for its clients.
What is the minimum investment for Scion asset management?
The Scion Value G7 fund has a minimum account size of $500,000, as per the firm’s requirements. However, the firm may make exceptions or change the minimum at its discretion. To invest in a private fund, the firm mandates that each investor must be a qualified purchaser, a qualified client, or an accredited investor.