🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

'Big Short' Investor Michael Burry Bets Heavy On Gold, Renewable Energy Stocks, Exits Amazon, Alphabet

Published 16/05/2024, 17:14
© Reuters.  'Big Short' Investor Michael Burry Bets Heavy On Gold, Renewable Energy Stocks, Exits Amazon, Alphabet
C
-
ORCL
-
GOOGL
-
BIDU
-
AMZN
-
CVS
-
GC
-
FSLR
-
NXST
-
HCA
-
BP
-
JD
-
BABA
-
SPY
-

Benzinga - by Piero Cingari, Benzinga Staff Writer.

Michael Burry, the legendary investor who famously predicted the 2008 financial crisis, has once again made headlines with his latest 13F filing for his hedge fund Scion Asset Management LLC.

The first quarter of 2024 reveals a strategic recalibration towards physical commodities and renewable energy, while Burry shifted away from some tech giants.

The total market value of Scion's 13F securities increased from $94.6 million to $103.49 million. The fund’s activity included five new purchases, additions to 11 existing positions, and complete sell-offs of 14 stocks.

Top 5 Buys: A Golden Bet On Gold And Clean Energy Burry's top buys for Q1 2024 reveal a clear pivot towards physical precious metals and clean energy, underscoring his anticipation of rising value in these sectors.

Leading the charge is the Sprott Physical Gold Trust ETV (NYSE:PHYS), with Scion increasing its position by $7.62 million, marking a 7.37% change in the portfolio. This substantial investment highlights Burry's confidence in gold as a hedge against economic uncertainty. The aforementioned gold fund has delivered a 16% return year to date, outperforming the broader stock market, as tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY), which rose by 12%.

Next in line is Cigna Holding Co (NYSE:CL), where Scion increased its stake by $7.26 million, representing a 7.02% portfolio change. This move reflects Burry's continued belief in the resilience and growth potential of the healthcare sector.

Reflecting confidence in the energy sector, Burry added $6.59 million worth of BP Plc ADR (NYSE:BP), translating to a 6.37% portfolio change. This investment signifies Burry’s recognition of BP’s strong position in the global energy market, especially amid BP’s transition to cleaner energy sources.

Last week, the British energy company’s electric vehicle charging unit announced plans to acquire Tesla Inc. (NASDAQ:TSLA) supercharging sites in the US as part of its expansion efforts.

Burry's commitment to renewable energy is further emphasized by a $5.06 million increase in First Solar Inc. (NYSE:FSLR), representing a 4.89% change in the portfolio. This move aligns with the global shift towards sustainable energy solutions, showcasing Burry's foresight in capitalizing on this growing trend.

Rounding out the top five buys is Baidu Inc ADR (NASDAQ:BIDU), with a $4.38 million addition, marking a 4.07% portfolio change. This investment underscores Burry’s confidence in the long-term potential of Chinese technology companies.

In his Q4 2023 13F filing, Burry increased stakes in two major Chinese retail giants, JD.com Inc (NASDAQ:JD) and Alibaba Group Holdings (NASDAQ:BABA).

At the end of the first quarter 2024, Burry further increased his stakes in these two giants, purchasing an additional 160,000 shares of JD.com and 50,000 shares of Alibaba.

Top 5 Portfolio Divestments: Burry Trims Tech Giants Burry made notable divestments in several high-profile tech stocks during the first quart.

Oracle Corp (NASDAQ:ORCL) tops the list, with Scion decreasing its holdings by $5.77 million, a 5.57% change in the portfolio.

CVS Health Corp (CVS) followed closely, with a $5.62 million reduction, a 5.43% change in the portfolio. This move might reflect concerns over potential challenges in the healthcare sector.

Nexstar Media Group (NASDAQ:NXST) ranked third in terms of largest sales, with Burry reducing the stake by $5.57 million (5.39% change).

Notably, Burry opted to completely exit his positions in two major U.S. tech giants, suggesting a reevaluation of their growth prospects following a strong rally.

Alphabet Inc. (NASDAQ:GOOGL) saw a full divestment, with Burry selling $5.35 million worth of shares (a 5.17% change).

Similarly, Amazon.com Inc. (AMZN) experienced a complete exit, with a $4.99 million reduction, representing a 4.82% portfolio change. This move highlights Burry's cautious stance on the future performance of one of the world's largest e-commerce platforms.

Portfolio Summary The top five holdings by weight in the Scion Asset Management LLC’s portfolio by the end of the Q1 2024 are:

  • JD.com Inc: 9.53%.
  • Alibaba Group Holding Ltd: by 8.74%.
  • HCA Healthcare Inc (NYSE:HCA): 8.06%.
  • Citigroup Inc (NYSE:C): 7.64%.
  • Sprott Physical Gold Trust: 7.37%.
  • Read now: Warren Buffett’s Berkshire Confirms Apple Sale, Dumps This PC Maker, Finally Reveals Mystery Stock: Here Are The Portfolio Changes To Know

    Image created using artificial intelligence via Midjourney.

    © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

    Read the original article on Benzinga

    Latest comments

    Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
    Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
    Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
    It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
    Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
    © 2007-2024 - Fusion Media Limited. All Rights Reserved.