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Even Michael Burry Is Buying Now

Published 11/15/2022, 11:50 AM
Updated 07/09/2023, 06:31 AM
  • Burry has been shorting U.S. markets since the pandemic
  • In August, the renowned investor dumped all his positions and kept only one company: Geo Group
  • However, Scion Asset Management's latest 13F filing shows that the "Big Short" investor has bought five stocks last quarter

One of the world's most acclaimed bears, Michael J. Burry—famous for making billions by predicting the 2008 subprime mortgage crisis, which inspired the movie "The Big Short"—has returned to the markets.

On Monday, Burry's Scion Asset Management filed a 13F for the quarter, revealing he added five new stocks to his company's portfolio. They are:

  • California-based rocket, hypersonic, and electric propulsive systems manufacturer Aerojet Rocketdyne Holdings, Inc. (NYSE:AJRD)
  • Saint Louis, Missouri-based telecommunications and mass media company Charter Communications (NASDAQ:CHTR)
  • Nashville-based prison management company CoreCivic (NYSE:CXW)
  • Bermuda-based telecommunications company Liberty Latin America Ltd. (NASDAQ:LILA)
  • West Chester, Pennsylvania-based media conglomerate Qurate Retail, Inc. (NASDAQ:QRTEA)

Burry's purchases come after the famous investor liquidated almost his entire portfolio in August to keep only one stock: Geo Group (NYSE:GEO), another American prison operator.

Interestingly, out of the five stocks purchased by Scion last quarter, three are in the heavily battered telecommunications sector—this year's worst performer in the S&P 500.

Despite his latest moves, Burry has recently stated that he still expects the general market to fall further. Still, as it appears, even the famed bear has begun to see buying opportunities out there.

You can check out Burry's portfolio, performance, and latest filings in InvestingPro.

Meanwhile, today's PPI numbers appear to have given the market renewed breadth. As of this writing, the S&P 500 is up 1.7%, while the NASDAQ Composite is jumping by 2.5%.

Cryptocurrency world aside, where the FTX affair is creating quite a few problems for the sector in general, global markets seem more positive after last week's inflation figures.

Below, I have given Goldman Sachs's estimates for upcoming rate hikes. As mentioned, I expect a 50 basis point increase in December and a total increase of between 5 and 5.50 percent from March to May as the final pivot point.

Goldman Sachs's Rate Hike Expectations

Source: Goldman Sachs

Therefore, Fed Chairman Powell's words will be even more important than the magnitude of the next hike by the Fed. Markets will surely appreciate it if he lets these hikes' so-called "light at the end of the tunnel" appear.

In the meantime, silver, which I reported a few weeks ago, continues to outperform. And it may have room for further recovery, as it is still lagging behind other commodities in the year. We shall see.

Silver Vs. Commodities

Source: Bloomberg

For the time being, we have to wait for developments in the next 2-3 weeks, the next Fed meeting, and then start to draw conclusions for 2022, which, as mentioned, could also have the right push to surprise investors between now and the end of the year.

Meanwhile, Warren Buffett and Michael Burry keep buying.

Disclosure: The author is long on the S&P 500 index.

Latest comments

Silver is real and useful and necessary to make that iPhone of yours. Your money, dollars, are unlawful and illegal according to the US Constitution, and less than nothing as they are not even DEFINED as to what their value is.
Silver is nice and all but its kinda a byproduct of other mining.  There just isn't enough demand.  For the constant supply produced.
not sure where you're getting your research from. silver is in a multi-million ounce deficit and has been for a year and a half now. they keep finding new use cases for it all the time. the fact that it tends to be a byproduct of other mining activities has nothing to do with anything.
The only way the Fed can bring inflation down is by destroying the purchasing power of the consumer: that entails lowering stock prices and home values. Because YOLO. It's time to turn your equity into felicity NOW. Otherwise, it's going to be too late. You have 2 weeks at most.
I think there are plenty of other arguments if you're a buyer than saying that Burry is buying. Do not misuse his name !
Advert on this page says 77% of retail investors lose money with this CFD provider. That’s because they listen to BS like this.
typical article here... misleading
to short utility companies after 60%-70% is the most stupid thing I ever heard...   short companies that has a value of 1.3T and PE of 60 that really make sense... . AMZN APLE Google MSFT FB all will drop until they will meet the PE target of 15
you are full of lies as his tweet this morning disagrees totally
Ya, and Charlie Munger bought BABA during the bear market and sold with a 40 mil loss.
Miss leading article title. Look at the type of stocks Mr. Burry is buying. Mr.Burry isn't buying Facebook or Google ect. Focus on what Mr.Burry is buying not the fact he is buying. I believe Mr.Burry's bearish thesis still has not changed on the market. IMO
Yeah, but I think the bottom line is that even Burry is seeing opportunities right now. Look at these telecom companies he's bought..they are all down like 50-70% this year..
so..., what happened to the collapse of the markets and the apocalypse that he himself predicted?
it's already started. winter is going to make it undeniable the collapse has begun.
You were his exit liquidity as he was shorting.
it will take to 2023 to see the effects and the earnings.  Housing is lagging at least by six months maybe more.
what a shameful article, those are very safe companies to buy at the moment, far from what you are implying, he remains a mayor bear 🐻
Well, I guess that's what he says here: "Despite his latest moves, Burry has recently stated that he still expects the general market to fall further. Still, as it appears, even the famed bear has begun to see buying opportunities out there."
That's not what the title grabs onto.
So basically all that can be done now is forecasting. These forecasts constantly change.
He shorted and now he bought and he'll sell when it reverses again. What's so hard to understand here? Unlike you perma-bulls he doesn't take sides
Burry.... unendo i puntini tra un dato superiore a tutti; raggiunti gli otto miliardi di popolazione e quello che comporta. questo dato con i primi acquisti di Bury, quindi quelli da cui vuole la leva più ampia e su cui si sente sicurissimo entrando in anticipo sono telecomunicazioni attraverso le quali passeranno tutti i sistemi di vita virtuale per tenere in stato di quiete tutta la popolazione possibile e le gestioni carcerarie dove mettere gli altri che poi finiranno a loro volta connessi e intubati per occupare meno risorse possibili. Il vortice roteante nel girone di questo imbuto porta sempre a confluire tutti nel metaverso nel quale condotti a spegnerci silenziosamente. Buon stato di massima quiete e compostaggio a tutti
he then deleted his social media accounts because he's an actual *****who hasn't made a smart move in over a decade
Wrong.  He's on Twitter.
This is a bear market rally people, get ready...
fake news...
This was widely published yesterday. Just do a little research.
can't stop laughing after seeing headlines thought was saying market gonna collapse
Just wait
Title is like cheating
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