We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Michael Burry is an American hedge fund manager considered to be one of the sharpest minds on Wall Street. Burry soared to prominence after his bold and correct prediction that the subprime mortgage market would collapse in 2007. Not only did Burry correctly predict the subprime mortgage crisis would unfold (which very few other investors predicted), but he also profited handsomely.
Through the purchase of credit default swaps from big banks on the mortgage bond market, Burry made a windfall profit of $100 million in the months following the housing crisis of 2008. Because of Burry's rapid ascent and unique personality, Hollywood took notice. In the blockbuster film "The Big Short," Christian Bale played Michael Burry.
While Burry is best known for his bold short bets, he has also found success on the long side. For example, Burry owned around 5% of GameStop's shares before it went on its spectacular run.
Though Burry sold before the Reddit-induced meme frenzy sent shares soaring by thousands of percent (Burry likely left nearly a billion dollars on the table), he still came away with around a $100 million profit on the trade.
13F Can Provide Investor Insight
Often, there is a big difference between what an investor says in public and what an investor is actually trading. For instance, in the heat of the pandemic bear market, hedge fund manager Bill Ackman famously warned investors on TV that "hell was coming. Contrary to his warning, Ackman covered his market shorts for a profit of more than $2 billion and bought millions of dollars' worth of shares in hospitality stocks. By the same token, Burry often tweets cryptic messages such as the word "sell" and "this time is different."
Fortunately, investors can cut through the noise and gain valuable insights into what the "smart money" is doing by looking at a 13F. A 13F is a mandatory form filed with the Securities and Exchange Commission by institutional investors who manage more than $100 million in assets. The goal of the 13F is to provide the public with transparency by disclosing the positions held by the institution. Though the 13F offers valuable insight into institutional investor mindset and strategy, 13Fs should be taken with a grain of salt. The form is only required to be filed quarterly so it is not necessarily real-time data.
What's Michael Burry's Scion Asset Management Buying?
Chinese Equities
The biggest surprise to emerge from Michael Burry's new purchases is his big bet on China. 18% of the portfolio is allocated to Chinese stocks such as JD.com and Alibaba Group. After a huge run to close 2022 and start the new year, BABA shares are pulling back to the 50-day moving average for the first time (an attractive zone for those who missed the initial move. BABA is slated to report earnings later this month on February 23rd.
The largest new purchase for Burry was Black Knight Financial Services. Black Knight is a workflow automation, data, and analytics provider to the mortgage and real estate industries.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks Investment Ideas feature highlights: GameStop, JD.com, Alibaba Group and MGM Resorts
For Immediate Release
Chicago, IL – February 16, 2023 – Today, Zacks Investment Ideas feature highlights GameStop's (GME - Free Report) , JD.com (JD - Free Report) , Alibaba Group (BABA - Free Report) and MGM Resorts (MGM - Free Report) .
3 of "The Big Short's" New Purchases
A Legend Is Born
Michael Burry is an American hedge fund manager considered to be one of the sharpest minds on Wall Street. Burry soared to prominence after his bold and correct prediction that the subprime mortgage market would collapse in 2007. Not only did Burry correctly predict the subprime mortgage crisis would unfold (which very few other investors predicted), but he also profited handsomely.
Through the purchase of credit default swaps from big banks on the mortgage bond market, Burry made a windfall profit of $100 million in the months following the housing crisis of 2008. Because of Burry's rapid ascent and unique personality, Hollywood took notice. In the blockbuster film "The Big Short," Christian Bale played Michael Burry.
While Burry is best known for his bold short bets, he has also found success on the long side. For example, Burry owned around 5% of GameStop's shares before it went on its spectacular run.
Though Burry sold before the Reddit-induced meme frenzy sent shares soaring by thousands of percent (Burry likely left nearly a billion dollars on the table), he still came away with around a $100 million profit on the trade.
13F Can Provide Investor Insight
Often, there is a big difference between what an investor says in public and what an investor is actually trading. For instance, in the heat of the pandemic bear market, hedge fund manager Bill Ackman famously warned investors on TV that "hell was coming. Contrary to his warning, Ackman covered his market shorts for a profit of more than $2 billion and bought millions of dollars' worth of shares in hospitality stocks. By the same token, Burry often tweets cryptic messages such as the word "sell" and "this time is different."
Fortunately, investors can cut through the noise and gain valuable insights into what the "smart money" is doing by looking at a 13F. A 13F is a mandatory form filed with the Securities and Exchange Commission by institutional investors who manage more than $100 million in assets. The goal of the 13F is to provide the public with transparency by disclosing the positions held by the institution. Though the 13F offers valuable insight into institutional investor mindset and strategy, 13Fs should be taken with a grain of salt. The form is only required to be filed quarterly so it is not necessarily real-time data.
What's Michael Burry's Scion Asset Management Buying?
Chinese Equities
The biggest surprise to emerge from Michael Burry's new purchases is his big bet on China. 18% of the portfolio is allocated to Chinese stocks such as JD.com and Alibaba Group. After a huge run to close 2022 and start the new year, BABA shares are pulling back to the 50-day moving average for the first time (an attractive zone for those who missed the initial move. BABA is slated to report earnings later this month on February 23rd.
Travel & Leisure
Two of Burry's newest purchases are bets on the travel and leisure space, like hospitality and casino operator MGM Resorts. (In case you missed our recent airline piece click here)
Software
The largest new purchase for Burry was Black Knight Financial Services. Black Knight is a workflow automation, data, and analytics provider to the mortgage and real estate industries.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.