Best Value Stocks? 15 Stocks Dr Michael Burry Bought and Sold
In this piece, we will take a look at 15 stocks Dr Michael Burry recently bought and sold. If you want to skip our introduction to the institutional investor, then take a look at 5 Stocks Dr Michael Burry Bought and Sold.
Years after accurately predicting the 2008 financial crisis and making a fortune out of it, Michael Burry is yet again in the spotlight, this time on closing a bit short of $1.6 billion. However, the legendary investor appears to have accumulated losses in the upward of 40% as he bet against the SPDR S&P 500 ETF Trust (SPY) and the Invesco QQQ Trust (QQQ).
Burry was staring at a significant profit had his short positions materialized as he had only spent $26.5 million to build the $1.6 billion short position. The temporary position, a bet against the US economy, came as economists started questioning the slowing US economy amid the high-interest rate environment.
Most economists had predicted that the US economy would plunge into recession owing to the high-interest rate environment at year-end. However, with the US Federal Reserve pausing hikes on two consecutive meetings, the recession prospects have dwindled significantly. This has been one of the catalysts that has offered support to equities, fuelling a bounce back in the fourth quarter and plunging Burry into significant loss in his short positions.
Despite the big miss, Burry remains one of the most respected investors. He is often looked upon to provide insights into the direction the markets are likely to move. The legendary investor shot to fame after being featured in The Big Short movie over his massive win against the housing market in 2008. The
The founder of Scion Asset Management made $100 million by betting against the US housing market. Investors who trusted his insights and analysis of the market and stayed with him earned a $725 million return as the market crashed.
Burry's impressive record in the market stems from the in-depth analysis he carried out before tweaking his portfolio at Scion. He is best known as a value investor and stark proponent of fundamental analysis that allows him to make bold bets even if it means going against the grain.
Burry went on to make a name for himself a decade later by taking short positions against stocks and other asset classes that he believed were overly overvalued. Therefore, it did not come as a surprise when he went short on the S&P and Nasdaq 100 in the third quarter after they had posted double-digit percentage gains.
The short position achieved significant profit as the S&P 500 ETF and Nasdaq 100 index fell 3.6% and 3%, respectively. However, Burry was forced to close down the position after the market bounced back and resumed the uptrend that started early in the year. The bounce back resulted in a 40% loss.
Michael Burry of Scion Asset Management
Regulatory filings indicate that Scion Capital was forced to shrink its exposure in the third quarter, selling 76% of its stocks. The hedge fund closed its remaining position in New York Community Bank, having spent more than $3 million trying to profit from the banking crisis early in the year. Additionally, it closed positions in Vital Energy, Qurate Retail Inc, Expedia, Precision Drilling Corp and Hanesbrands Inc.
However, Burry also expressed optimism about Chinese stocks, which have been pressured in recent years due to the slowing Chinese economy and regulatory pressures. Consequently, Scion reopened new positions in JD.com and Alibaba, two of the biggest players in China's internet landscape.
Nevertheless, Burry has also affirmed he is not bullish about semiconductor plays that have been flying high amid strong demand for chips to power the artificial intelligence revolution. The legendary investor has since opened a short position on Blackrock's iShares Semiconductor ETF, which tracks some of the biggest semiconductor plays. It boasts of Nvidia, which has more than tripled in value in 2023, as one of its biggest holdings.
Our Methodology
Burry, renowned for his success as a value investor, strategically seeks profit from undervalued stocks. In the third quarter, he implemented a portfolio overhaul at Scion Capital, reducing positions from 33 to 13. After analyzing the 13F filing, we've compiled a list of stocks where Burry either decreased or entirely divested stakes, as well as those where he initiated new positions or increased existing holdings in Q3 2023. These stocks were further evaluated and ranked based on Insider Monkey's Q3 2023 survey of 910 hedge funds.
Stocks Dr Michael Burry Just Bought and Sold
15. Safe Bulkers, Inc. (NYSE:SB)
Scion Asset Management’s Equity (Increased Stake by 136%): $972,000
Number of Hedge Fund Holders: 9
Based in Monaco, Safe Bulkers, Inc. (NYSE:SB) offers marine dry bulk transportation services. It owns and operates dry bulk vessels for transporting bulk cargo, including coal, grain, and iron ore. Safe Bulkers, Inc. (NYSE:SB) boasts a fleet of 40 dry bulk vessels with a 4.5 million deadweight ton capacity.
The marine shipping stock is up by about 40% for the year, outperforming the overall market. Scion Asset Management increased its stake in Safe Bulkers, Inc. (NYSE:SB) by 136% in Q3 2023 to 300,000 shares worth $972,000. In addition to share price appreciation, the hedge fund can benefit from the 5.39% dividend yield.
14. Star Bulk Carriers Corp. (NASDAQ:SBLK)
Scion Asset Management’s Equity (Increased Stake by 36%): $4.82 Million
Number of Hedge Fund Holders: 14
Star Bulk Carriers Corp. (NASDAQ:SBLK) is an industrial investment play in Burry’s portfolio that operates as a shipping company engaged in the ocean transportation of dry bulk cargo worldwide. Star Bulk Carriers Corp. (NASDAQ:SBLK)’s vessels transport bulk commodities, including iron ores, minerals, grains, bauxite and steel products.
Burry increased his stake in Star Bulk Carriers Corp. (NASDAQ:SBLK) by 36% in Q3 2023 to 250,000 shares valued at about $4.82 million, accounting for 4.86% of the portfolio. Star Bulk Carriers Corp. (NASDAQ:SBLK) is up by about 5% for the year and rewards investors with a 7.76% dividend yield.
13. Crescent Energy Company (NYSE:CRGY)
Scion Asset Management’s Equity (Cut Stakes by 19%): $2.5 million
Number of Hedge Fund Holders: 15
Michael Burry's hedge fund acquired stakes in Crescent Energy Company (NYSE:CRGY) in the second quarter as he sought to gain exposure in the energy sector at a time when oil and gas prices were rising amid supply concerns. Crescent Energy Company (NYSE:CRGY) acquired, developed, and produced crude oil, natural gas, and natural gas liquids and was trading at a discount in the second quarter.
Scion Asset Management acquired 243,963 shares in Crescent Energy Company (NYSE:CRGY) in Q2 2023. However, it trimmed its stakes in the third quarter after the stock had gained 14%. The hedge fund exited the third quarter owing 200,000 shares worth about $2.5 million, accounting for 2.5% of its portfolio, down from 243,963 shares in the second quarter.
12. Hanesbrands Inc. (NYSE:HBI)
Scion Asset Management’s Equity stake: 0%
Number of Hedge Fund Holders: 19
Hanesbrands Inc. (NYSE:HBI) has been one of Michael Burry's plays in the apparel manufacturing business, having acquired stakes in the second quarter. The company designs, manufactures and sells a range of basic apparel for men, women and children. Hanesbrands Inc. (NYSE:HBI)’s product line includes innerwear, activewear and international.
While Hanesbrands Inc. (NYSE:HBI) is down 33% for the year, Scion Asset Management generated a 5.9% gain in Q3 2023 by selling 40,000 shares it had acquired in Q2 2023.
11. Hudson Pacific Properties, Inc. (NYSE:HPP)
Scion Asset Management’s Equity (Increased Stake by 60%): $2.66 Million
Number of Hedge Fund Holders: 22
Burry continued to echo his strong belief about the outlook of the real estate sector by increasing stakes in Hudson Pacific Properties, Inc. (NYSE:HPP) by 60% in Q3 2023. The company is a real estate investment trust servicing dynamic tech and media tenants. Hudson Pacific Properties, Inc. (NYSE:HPP)’s unique and high-barrier tech and media focus leverages a full-service, end-to-end value-creation platform.
While Hudson Pacific Properties, Inc. (NYSE:HPP) is down about 44% for the year, Scion Asset Management took the opportunity to buy it at a discount after a significant pullback. The hedge fund now owns 400,000 shares valued at about $4.66 million, which allows it to profit from the 7.14% dividend yield.
10. The RealReal, Inc. (NASDAQ:REAL)
Scion Asset Management’s Equity (Cut stakes by 50%): $1.58 million
Number of Hedge Fund Holders: 23
The RealReal, Inc. (NASDAQ:REAL) emerged as a legendary investor Burry ideal consumer cyclical play in the luxury goods space early in the year. Scion Asset Management acquired stakes in the company in the first quarter, gaining exposure to an online marketplace for the resale luxury goods in the US. The RealReal, Inc. (NASDAQ:REAL) also offers various product categories, including women's fashion, men's fashion, and watches.
The RealReal, Inc. (NASDAQ:REAL) was on an impressive run in the first half of the year, rallying by about 60%. Nevertheless, Scion Asset Management trimmed its stakes in the third quarter after The RealReal, Inc. (NASDAQ:REAL) had gained 68%. It exited Q3 with 750,000 shares from 1.5 million as of Q2 2023, accounting for 1.59% of the portfolio.
9. Stellantis N.V. (NYSE:STLA)
Scion Asset Management’s Equity (Increased Stake by 24%): $7.7 Million
Number of Hedge Fund Holders: 27
Stellantis N.V. (NYSE:STLA) is a consumer cyclical company that designs, manufactures, distributes, and sells automobiles and light commercial vehicles, engines, transmission systems, and metallurgical products and offers mobility services. Stellantis N.V. (NYSE:STLA) also provides luxury and premium passenger vehicles.
Stellantis N.V. (NYSE:STLA) has been in fine form, rallying by about 42% year to date, which explains why Burry increased his stake in the company by 24% to 400,000 shares worth $7.652 million. Stellantis N.V. (NYSE:STLA) also offers an enticing 7.25% dividend yield.
8. Vital Energy, Inc. (NYSE:VTLE)
Scion Asset Management’s Equity stake: 0%
Number of Hedge Fund Holders: 30
Tulsa, Oklahoma-based Vital Energy, Inc. (NYSE:VTLE) is an independent energy company that acquires, explores and develops oil and natural gas properties in the Permian basin of West Texas. Burry sought exposure to the energy sector and acquired $5.6 million worth of stakes in the company in the second quarter.
The hedge fund sold all its holdings in the third quarter after Vital Energy, Inc. (NYSE:VTLE) had gained 17%. However, the stock is down about 8% for the year and underperformed the S&P 500, up about 17%.
7. Nexstar Media Group, Inc. (NASDAQ:NXST)
Scion Asset Management’s Equity (Increased Stake by 225%): $6.98 Million
Number of Hedge Fund Holders: 31
Burry strengthened his exposure in the communication service sector by increasing his exposure in Nexstar Media Group, Inc. (NASDAQ:NXST) by 225% in Q3 2023. The company operates television broadcasting and digital media companies that acquire, develop, and operate television stations, active community websites, and digital media services.
Scion Asset Management took advantage of a significant deep in Q3 2023 to bolster company exposure to 48,651 shares valued at about $6.98 million. Nexstar Media Group, Inc. (NASDAQ:NXST) is down by 14% for the year and comes with a 3.60% dividend yield.
6. Expedia Group Inc. (NASDAQ:EXPE)
Scion Asset Management’s Equity stake: 0%
Number of Hedge Fund Holders: 52
Expedia Group Inc. (NASDAQ:EXPE) is an online travel company that helps travellers easily plan and book travel from the widest selection of vacation packages, flights, hotels, and rental cars. Expedia Group Inc. (NASDAQ:EXPE) also offers loyalty programs, hotel accommodations, and alternative accommodations.
Burry's hedge fund acquired 100,000 shares in Expedia Group Inc. (NASDAQ:EXPE) in the second quarter and sold all in the third quarter after generating a 10% gain. Expedia Group Inc. (NASDAQ:EXPE) is up 29% for the year, outperforming the overall market.
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Disclosure: None. 15 Stocks Dr Michael Burry Just Bought and Sold is originally published on Insider Monkey.
