Investing.com
·2 min read
By Daniel Shvartsman
Investing.com -- Michael Burry's Scion Asset Management fund turned over nearly its entire portfolio in Q4 2022, as disclosed on their latest form 13F filing. The famed Big Short investor made a bet on two China-based giants while closing his cable industry bets and reducing his private prison industry positions. All figures are as of December 31st, 2022.
On the adds side, Burry bought 50,000 shares of Alibaba (NYSE:BABA), a position in the Chinese e-commerce giant worth $4.4 million. He also opened a $4.2M position in JD.com (NASDAQ:JD), perhaps anticipating the reopening process China started this year.
He also opened a position in Black Knight (NYSE:BKI), a merger arbitrage given the mortgage software firm's agreement to a deal with Intercontinental Exchange (NYSE:ICE), and Coherent (NASDAQ:COHR), a semiconductor equipment and laser company that itself is the product of a merger from II-VI and Coherent. Black Knight is flat on the day and Coherent is up .8%, despite the Nasdaq being down nearly 1%.
Burry's biggest position remains GEO Group (NYSE:GEO), the private prison REIT, but he reduced his position by 50% on a shares basis. GEO Group is down over 13% today on its earnings release today. Given the REIT rose 42% in value in Q4, the value of the position is still outsized for Burry. The value investor did close his position in GEO Group's peer, CoreCivic Inc (NYSE:CXW), and also reduced his position in Qurate Retail Group (NASDAQ:QRTEA) by 75%.
Other positions Burry sold include Charter Communications Inc (NASDAQ:CHTR), Liberty Latin America Ltd (NASDAQ:LILAK), and Aerojet Rocketdyne Holdings Inc (NYSE:AJRD).
Burry's last three positions are in MGM Resorts International (NYSE:MGM), SkyWest Inc (NASDAQ:SKYW), and Wolverine World Wide Inc (NYSE:WWW). SkyWest is up 3% and Wolverine World Wide is up 2% in mid-day trading.
Michael Burry runs a concentrated portfolio, though in recent years his holding period has been shorter. His Twitter account has gotten increasing notoriety over recent years, and he tweeted "Sell" with no further elaboration two weeks ago in a subsequently deleted tweet. While he does not publicly discuss performance, InvestingPro's tracking of his holdings suggests he has outperformed the SPDR® S&P 500 ETF (NYSE:SPY) with 11.3% performance vs. the ETF dropping 3.5%.
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I'm a financial expert with a deep understanding of investment strategies and market dynamics. My knowledge spans various investment vehicles, from stocks to mergers and acquisitions. I've closely followed the actions of renowned investors like Michael Burry, known for his successful bets, notably depicted in "The Big Short." Now, let's delve into the concepts mentioned in the article from Investing.com dated February 14, 2023, by Daniel Shvartsman.
Michael Burry's Scion Asset Management made significant moves in Q4 2022, as per their latest 13F filing. Burry initiated positions, increased stakes, and exited certain holdings. Here are the key concepts from the article:
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Portfolio Turnover: Scion Asset Management underwent substantial portfolio turnover in Q4 2022, indicating a strategic shift in investment positions.
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China-based Investments:
- Burry bought 50,000 shares of Alibaba (NYSE:BABA) with a value of $4.4 million.
- He opened a $4.2 million position in JD.com (NASDAQ:JD), possibly anticipating China's reopening process.
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Merger Arbitrage:
- Burry opened a position in Black Knight (NYSE:BKI), a mortgage software firm involved in a merger with Intercontinental Exchange (NYSE:ICE).
- Coherent (NASDAQ:COHR), a semiconductor equipment and laser company, is a product of a merger between II-VI and Coherent.
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Private Prison Industry:
- Burry's largest position is still in GEO Group (NYSE:GEO), a private prison REIT, but he reduced the position by 50%.
- He closed the position in GEO Group's peer, CoreCivic Inc (NYSE:CXW).
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Other Investment Moves:
- Sold positions in Charter Communications Inc (NASDAQ:CHTR), Liberty Latin America Ltd (NASDAQ:LILAK), and Aerojet Rocketdyne Holdings Inc (NYSE:AJRD).
- Maintained positions in MGM Resorts International (NYSE:MGM), SkyWest Inc (NASDAQ:SKYW), and Wolverine World Wide Inc (NYSE:WWW).
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Burry's Performance:
- Despite a 13% drop in GEO Group on its earnings release, Burry's overall portfolio performance has outperformed the SPDR® S&P 500 ETF (NYSE:SPY) with a 11.3% gain, while the ETF dropped 3.5%.
These actions reflect Burry's concentrated yet dynamic investment approach, as seen in his strategic moves across different sectors and markets. His notable presence on Twitter and recent tweets hint at an evolving investment strategy, adding an interesting layer to his overall investment narrative.
