'Big Short' Investor Michael Burry Bets Heavy On Gold, Renewable Energy Stocks, Exits Amazon, Alphabet
Portfolio Pulse from Piero Cingari
Michael Burry's Scion Asset Management LLC has shifted its investment strategy in Q1 2024, focusing on physical commodities and renewable energy while divesting from major tech stocks. The fund's market value increased to $103.49 million, with significant investments in Sprott Physical Gold Trust, Cigna Holding Co, BP Plc ADR, First Solar Inc., and Baidu Inc ADR. Burry also increased stakes in JD.com Inc and Alibaba Group Holdings, while completely exiting positions in Alphabet Inc. and Amazon.com Inc.
May 16, 2024 | 4:14 pm
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POSITIVE IMPACT
Scion added $4.38 million to its position in Baidu Inc ADR, indicating Burry's confidence in the long-term potential of Chinese technology companies.
Burry's investment in Baidu suggests a positive outlook on Chinese tech, likely leading to short-term price appreciation as investors follow his strategic moves.
CONFIDENCE 80
IMPORTANCE 65
RELEVANCE 75
POSITIVE IMPACT
Scion added $6.59 million worth of BP Plc ADR, reflecting confidence in BP's strong position in the global energy market and its transition to cleaner energy sources.
Burry's investment in BP highlights confidence in the company's strategic direction, likely leading to positive short-term price movements as investors align with this view.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 85
POSITIVE IMPACT
Scion increased its stake in Cigna Holding Co by $7.26 million, indicating Burry's belief in the resilience and growth potential of the healthcare sector.
The increased investment in Cigna suggests a positive outlook on the healthcare sector, likely leading to a short-term price increase as investors follow Burry's lead.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Scion increased its position in First Solar Inc. by $5.06 million, emphasizing Burry's commitment to renewable energy and the global shift towards sustainable energy solutions.
The investment in First Solar aligns with the global trend towards renewable energy, likely driving short-term price gains as investors recognize the sector's growth potential.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Scion Asset Management increased its position in Sprott Physical Gold Trust by $7.62 million, reflecting Burry's confidence in gold as a hedge against economic uncertainty.
Burry's significant investment in PHYS indicates a strong belief in gold's value as a safe haven, likely boosting investor confidence and driving short-term price appreciation.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Scion completely exited its position in Amazon.com Inc., selling $4.99 million worth of shares, highlighting a cautious stance on the future performance of the e-commerce giant.
The complete exit from Amazon indicates concerns about its growth prospects, likely leading to short-term price declines as investors reassess their positions.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 85
NEGATIVE IMPACT
Scion completely exited its position in Alphabet Inc., selling $5.35 million worth of shares, indicating a cautious stance on the future performance of the tech giant.
The complete exit from Alphabet suggests concerns about its future performance, likely leading to short-term price pressure as investors react to Burry's divestment.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 85