The investment world is no stranger to Michael Burry’s audacious moves. The man famously portrayed in “The Big Short” is back at it again, making bold plays and steering his portfolio in unexpected directions.
New filings reveal that Burry isn’t too optimistic about some of the market’s mainstays. Last quarter, he wagered against the stalwarts, S&P 500 and Nasdaq-100, by holding put options on the corresponding ETFs – SPDR S&P 500 and Invesco QQQ. But that’s just the beginning of the shake-up.
Earlier in the year, Burry made headlines for going big on banking stocks at what many considered a bargain. Fast forward a few months, and those picks are gone. Goodbye Capital One, Wells Fargo, First Republic, and others. The banking chapter seems closed – at least for now.
Burry’s firm, Scion Asset Management, also cut ties with Chinese e-commerce leaders Alibaba and JD.com. Instead, he’s got his eyes set on a completely different arena: energy, shipping, and mining. Fresh additions to Scion’s roster include Crescent Energy, Precision Drilling, Star Bulk Carriers, and a few more heavyweights.
However, amidst the whirlwind of changes, a handful of investments remained untouched. The lucky survivors? Firms like The Geo Group, Cigna Group, Signet Jewelers, and a few others.
Despite the flurry of buys and sells, the net worth of Scion’s portfolio stayed relatively stable, rounding off at a cool $111 million, options aside.
Burry’s knack for seeing what many overlook isn’t new. He skyrocketed to financial stardom with his gutsy bet against the housing bubble in the mid-2000s. Since then, he’s remained a prominent figure, notably backing GameStop before its viral meme stock explosion and daring to short positions on Tesla and the Ark Innovation fund.
Always one to sound the alarm on potential bubbles, Burry has a track record of stark market predictions. Earlier this year, he succinctly advised the masses with a single word: “Sell.” But, showcasing his human side, he admitted to a misstep with that call just a couple of months later.
Though recent times have seen Burry less vocal on public platforms, the market waits with bated breath. When Burry moves, the world watches. And as we see with his latest chess game of investments, he’s always thinking several moves ahead. For budding entrepreneurs and seasoned investors alike, there’s a lot to learn from Burry’s fearless approach to the market. One thing’s for sure: it’s never dull in the world of Michael Burry.