Michael Burry liquidated all of his stock, except … those in a jail

After calling the latest stock market crash a "nonsense" and claiming – correctly – that the US economy is about to face a frightening crash in some tweets which he then promptly canceled (thankfully, another account immortalized his tweet for posterity) …

… Michael Burry – who runs the small hedge fund Scion Capital – did something few of his peers would really do: He invested in line with his statement and, according to his just released 1 3F, the famous investor liquidated his entire portfolio which, as of March 31, had a notional value of just over $ 200 million (including $ 35 million of notional puts on AAPL), and instead retained only one stock: GEO Group, a private prison operator in which he had previously invested, but which he had almost completely discharged holding only $ 3 million in shares as of June 30th. Notably, as the chart below shows, this was the only stock it held at the end of the second quarter.

News that Burry's Scion only held shares in Geo Group, a company based in Boca Raton, Florida, sent the stock jump 12% to $ 7.68, taking the second-quarter gain to 14%.

Among others, the hedge fund has exited the positions of Alphabet, the company that controls Google and Bristol-Myers, in addition to having eliminated Apple's puts for a notional value of around 36 million dollars.

To be sure, Scion's 13F statement, which is required of all fund managers who oversee more than $ 100 million in U.S. equities, only shows holdings in stocks that are traded on domestic exchanges. It does not disclose securities traded outside the United States or short positions, i.e. short selling, which could also be substantial at this time . These records are also historical, as they provide a snapshot of a fund's holdings at the end of a quarter ending 45 days ago, and may not reflect current investments.

It is unclear when Burry liquidated his entire portfolio during the second quarter. The 51-year-old investor rose to prominence after a winning bet against mortgage loans in the run-up to the 2008 financial crisis; the outspoken anti-liberal has since become a cult figure on social media, with ominous predictions of an impending recession. Now he expects a much worse crisis than that of 2008.

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The article Michael Burry has liquidated all his shares, except .. those in a prison comes from ScenariEconomici.it .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/michael-burry-ha-liquidato-tutte-le-sue-azioni-tranne-quelli-in-un-carcere/ on Thu, 18 Aug 2022 07:00:37 +0000.