Investor from "The Big Short" divests all holdings, wagers exclusively on a single stock
Rewritten Article:
One of the most famous investors around, Michael Burry (51), is known for swimming against the crowd with his bold opinions. During the financial crisis, he bet against the housing market, "going short", and even accurately predicted a financial crisis for the year 2007. His tale was so extraordinary that Hollywood movie star Christian Bale played him in the Oscar-winning film "The Big Short" in 2015.
As of recently, Burry, who manages Scion Asset Management, doesn't appear to be in a great mood. His latest portfolio disclosure shows that he sold all his stocks in the second quarter. According to U.S. securities laws, fund managers with over $100 million in equities must file a 13F document within 45 days after the quarter's end, revealing their current holdings.
Burry's latest portfolio reveals an interesting picture. He only holds shares in one company: The Geo Group, which specializes in the operation and management of private prisons and psychiatric facilities. He owns 501,360 shares of the company. On August 15, the day of the disclosure, Geo Group's stocks surged by nearly 18% to $7.88, the highest level in six months.
In the first quarter, Burry's portfolio was more diversified, including companies like Alphabet, Meta, Stellantis, Bristol-Myers Squibb, and Cigna. Geo Group was added in the second quarter, indicating a significant portfolio shift. However, this isn't unusual for Burry. As reported by Yahoo Finance, he reduced his portfolio from 20 positions to just six within three months by the third quarter of 2021.
Historically, Burry's investments, like his focus on The Geo Group, have aligned with contrarian bets on undervalued sectors. Given his reputation for taking unpopular stances, it wouldn't be surprising if he's anticipating post-pandemic policy shifts or inflation-driven demand for correctional services. But his current portfolio strategy seems to have moved towards other sectors, such as Chinese tech and healthcare. This shift might indicates a more diversified approach to mitigate risks from U.S.-China tensions and rate hikes.
- Michael Burry, the celebrated investor known for his contrarian views, currently holds shares in The Geo Group, a company specializing in private prisons and psychiatric facilities.
- Burry, who recently sold all his stocks in the second quarter, only owns 501,360 shares of The Geo Group.
- Including Alphabet, Meta, Stellantis, Bristol-Myers Squibb, and Cigna, Burry's portfolio in the first quarter was more diversified, but he added The Geo Group in the second quarter, indicating a significant portfolio shift.
- Historically, Burry's investments, such as his focus on The Geo Group, have aligned with contrarian bets on undervalued sectors, and his current strategy might suggest an anticipated post-pandemic policy shift or inflation-driven demand for correctional services.
