Michael Burry Buys 4 Stocks in Addition to GameStop
Michael Burry's firm broke its characteristic silence this Monday to announce that it took an activist position in GameStop Corp., but Scion Asset Management also released his second-quarter portfolio moves this week.
Burry's investing skills gained attention when he took a massive short position against the subprime mortgage market at the outset of the Financial Crisis, as depicted in the movie "The Big Short." He founded his new firm, Scion Asset Management, in 2013, and has been reporting investments in public companies.
In the second quarter, Burry started four positions: FedEx Corp. (NYSE:FDX), Alphabet Inc. (NASDAQ:GOOG), Cardinal Health Inc. (NYSE:CAH) and Alibaba Group Holding Ltd. (NYSE:BABA).
Each of the holdings represents a sizable portion of his portfolio, ranging from around 9-10% of the portfolio. At quarter-end, Burry's long portfolio had a value around $94 million with 10 holdings, down from 14 at the end of the first quarter.
Burry exited eight investments, including JD.com Inc. (NASDAQ:JD), a holding he started only in the first quarter. JD.com previously occupied the largest space in the portfolio, accounting for 9.21%. He also exited Facebook (NASDAQ:FB), Altaba Inc. (NASDAQ:AABA) and PetIQ Inc. (NASDAQ:PETQ), among others.
Burry has described himself as a value investor in the style of Warren Buffett (Trades, Portfolio) and Benjamin Graham, though he says his approach is personalized and "continually evolving."
"Scion understands that profitable strategies in the first half of the 2000s were not the same strategies that were profitable in the second half of that decade," he wrote in a March 20 brochure filed with the SEC. "And Scion understands that this is true for most decades in modern times."
New buys
FedEx Corp. (NYSE:FDX)
Burry purchased 60,000 shares of FedEx Corp., giving it 10.53% portfolio weight. The stock's second-quarter share price averaged $175.
Fedex Corp. has a market cap of $39.64 billion; its shares were traded around $151.97 Friday with a price-earnings ratio of 82.15 and price-sales ratio of 0.57. The trailing 12-month dividend yield of FedEx Corp. is 1.72%. The forward dividend yield of FedEx Corp. is 1.64%. FedEx Corp. had an annual average earnings growth of 8.80% over the past 10 years. GuruFocus rated FedEx Corp. the business predictability rank of 2.5-star.
Alphabet Inc. (NASDAQ:GOOG)
Burry purchased 9,000 shares of Alphabet Inc., giving it 10.4% portfolio weight. The stock's second-quarter share price averaged $1,155.
Alphabet Inc. has a market cap of $798.97 billion; its shares were traded around $1,151.29 with a price-earnings ratio of 23.28 and price-sales ratio of 5.53. Alphabet Inc. had an annual average earnings growth of 15.90% over the past 10 years. GuruFocus rated Alphabet Inc. the business predictability rank of 3.5-star.
Cardinal Health Inc. (NYSE:CAH)
Burry purchased 200,000 shares of Cardinal Health Inc., giving it 10.07% portfolio weight. The stock's second-quarter share price averaged $46.
Cardinal Health Inc. has a market cap of $12.76 billion; its shares were traded around $42.79 Friday with a price-earnings ratio of 9.51 and price-sales ratio of 0.09. The trailing 12-month dividend yield of Cardinal Health Inc. is 4.45%. The forward dividend yield of Cardinal Health Inc. is 4.40%. Cardinal Health Inc. had an annual average earnings growth of 8.60% over the past 10 years. GuruFocus rated Cardinal Health Inc. the business predictability rank of 2-star.
Alibaba Group Holding Ltd. (NYSE:BABA)
Burry purchased 50,000 shares of Alibaba Group Holding Ltd., giving it 9.06% portfolio weight. The stock's second-quarter share price averaged $173.
Alibaba Group Holding Ltd. has a market cap of $428.39 billion; its shares were traded around $164.54 Friday with a price-earnings ratio of 29.51 and price-sales ratio of 7.20. Alibaba Group Holding Ltd. had an annual average earnings growth of 82.60% over the past 10 years. GuruFocus rated Alibaba Group Holding Ltd. the business predictability rank of 2.5-star.
See Michael Burry's portfolio here.
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This article first appeared on GuruFocus.
