Michael Burry's latest Q2 filings show concentrated bets in tech, healthcare, and Chinese markets.
Sectors & Industries
November 9, 2024
Michael Burry, the renowned hedge fund manager best known for predicting the 2008 financial crisis, has made some big moves in the second quarter of 2024. The head of Scion Asset Management recently filed his 13F, revealing a significant shake-up in his portfolio. This article delves into Burry's latest holdings, highlighting the stocks he’s bullish on, and analyzing what this could mean for the broader market.
According to Scion’s Q2 2024 13F filing, the total portfolio value dropped drastically from $103 billion in Q1 to $52.5 billion by the end of June 2024. This sharp decline was driven by Scion selling out of 11 stocks, reducing its holdings to just 10 companies, signaling a much more concentrated investment strategy.
While Burry’s top five holdings make up the bulk of his portfolio, they also offer a glimpse into his strategic mindset—leaning heavily into technology, healthcare, and consumer cyclical sectors. Let’s dive into his largest positions and recent trades.
Burry’s biggest holding, Alibaba, reflects his continued interest in Chinese technology stocks. With its recent upgrade on the Hong Kong Exchange and continued growth prospects, this stock could be Burry’s bet on a recovery in Chinese markets. While the stock faced challenges earlier in the year, it has rebounded sharply, up over 41% since Scion’s buy-in at an average price of $80.85 per share.
Despite being one of Burry’s top holdings, Scion trimmed its position in JD.com by over 30%. JD has seen profits nearly double year-over-year, but ongoing geopolitical tensions and a slowing Chinese economy could be influencing Burry’s decision to scale back his position.
A fresh addition to Scion’s portfolio, Shift4 Payments is a play on the expanding fintech sector. The company has experienced rapid growth, with payment volumes surging from $26.8 billion in Q2 2023 to $40.1 billion in Q2 2024. With a 30% rise in revenue over the past year, Burry seems to be capitalizing on the increased demand for payment processing services in the entertainment and hospitality industries.
Burry’s new investment in Molina Healthcare suggests he sees potential in the health services sector. Molina has shown robust growth, with Q2 revenues jumping from $8.3 billion to $9.4 billion year-over-year. Despite economic uncertainty, healthcare remains a relatively defensive play, and Burry’s decision to buy in at a reported price of $297 per share is already yielding a return with the stock trading at $330.
Known as the “Google of China,” Baidu has struggled this year, but Burry sees value in its long-term prospects. The stock is down 33% year-to-date, yet Burry doubled down on his position, buying in at an average price of $103.68. With its AI ambitions and the potential resurgence of China’s tech sector, Baidu could offer significant upside.
A lesser-known name in Burry’s top holdings, Hudson Pacific Properties is a real estate play that focuses on media and entertainment properties. With the rise of streaming and content creation, Burry might see value in HPP’s niche real estate strategy.
The RealReal, a consignment retailer for luxury goods, is facing headwinds with declining revenue expectations. Despite reducing his stake by nearly 30%, Burry still maintains a sizable position, suggesting he’s not entirely out on the company.
Olaplex, a high-end hair care company, is a surprising pick for Burry. The stock has gained nearly 47% since Scion bought in at $1.59, making it one of the best-performing additions in Q2.
Another defensive play, United Insurance Holdings, is a smaller financial services firm. Burry increased his stake by almost 20%, possibly positioning for long-term stability amid an uncertain market environment.
10. BioAtla Inc (BCAB) - 1.65% of Portfolio
BioAtla is a speculative biotech play, focusing on innovative cancer treatments. While the position is small, it indicates Burry’s willingness to take on higher risk for the potential of outsized returns.Michael Burry’s latest 13F reveals a highly concentrated portfolio focused on sectors poised for recovery or growth.
His increased exposure to Chinese tech, healthcare, and specialty real estate suggests he’s betting on undervalued areas with significant upside potential. While the reduction in JD.com and RealReal could signal concerns about short-term volatility, Burry’s large bets on Alibaba and Baidu indicate he sees opportunity where others see risk.Investors should approach these positions cautiously. While Burry’s track record is impressive, his moves are often contrarian and come with a higher level of risk. As always, it’s crucial to do your own research and consider how these positions align with your own risk tolerance and investment strategy.
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