Michael Burry’s Scion Capital Administration dumped his total inventory portfolio within the second quarter because the “Huge Brief” hedge fund legend stepped up his warnings a couple of looming inventory market crash, a submitting confirmed on Monday.
Scion offered off its lengthy positions on 11 firms throughout the second quarter, together with bullish bets on Google father or mother Alphabet, Fb father or mother Meta, Bristol-Meyers Squibb and Nexstar Media Group, in accordance with the firm’s newest 13-F submitting.
The holdings had been cumulatively price $165 million on the finish of the primary quarter.
Burry’s agency ended the second quarter with only one inventory holding. Scion added 501,360 shares of Geo Group, a Florida-based firm that invests in and operates personal prisons, that had been price $3.3 million. Geo Group’s inventory jumped about 12% in buying and selling Monday.
The Put up has reached out to Scion Capital Administration for touch upon the submitting. Burry declined Bloomberg’s request for remark.
Massive hedge funds are required to reveal their holdings in publicly traded firms every quarter by 13-F filings. The filings don't embrace details about brief positions and are correct as of the top of every quarter, which means Scion’s positions could have modified for the reason that type was submitted on the finish of June.
Burry’s guess in opposition to subprime mortgages was famously chronicled within the 2015 movie “The Huge Brief.” He has amassed greater than 1 million followers on Twitter, the place he has steadily posted dire warnings in regards to the state of the worldwide financial system in latest months.
The latest warning got here final Sunday, when Burry tweeted his view that the latest rally within the tech-heavy Nasdaq trade was prone to be short-lived.
“Can’t shake that foolish pre-Enron, pre-9/11, pre-WorldCom feeling,” Burry mentioned within the now-deleted tweet. He steadily deletes his tweets shortly after they're posted.
Final week, Burry cautioned of “winter coming” for the US financial system on account of a surge in client debt that would quickly hamstring spending and exacerbate a recession.
“Web client credit score balances are rising at document charges as shoppers select violence somewhat than reduce on spending within the face of inflation,” Burry tweeted.
“Bear in mind the financial savings glut downside? No extra. COVID helicopter money taught individuals to spend once more, and it’s addictive. Winter coming.”
And in July, Burry argued that a brutal market selloff that occurred on the time was “perhaps midway” over, with additional drops to come back as firms reported weaker earnings.
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