Scion Asset management, a private investment firm led by Michael Burry, abandoned 11 US equities in the second quarter. At the end of the period, it was only left with one.
Alphabet Inc. and Meta Platforms are among the positions exited by the hedge fund. According to a regulatory filing on Monday, it added Geo Group Inc., a private-prison operator. It was the only long stock holding in Scion as of June 30.
Michael Burry’s asset management had around 501, 360 shares including Florida-based Geo Group and Boca Raton. On Monday, Geo Group experienced a rise of 11%, reaching $7.60. Till the end of the second-quarter, the total profit recorded was over 15%. On the other hand, at the end of the first quarter, Scion had US Stocks worth around US$165 million.
Over the recent months, Burry has emerged as a prominent figure on social media. His predictions of the arrival of a downturn are quite popular. The 51-year old CEO became quite famous following wager win against mortgages in the period before the 2008 financial crisis. He hasn’t yet commented on the filing.
All money-managers who supervise over US equities worth over $100 million required to perform a disclosure. This disclosure displays stock holdings on the nation’s exchange. No non-US traded securities or short positions are disclosed. These kinds of fillings are also considered historical. At the end of a quarter, it provides a snapshot of a fund’s holdings. There are chances that it might not reflect in current investments.
Burry’s close followers don’t agree to his decision of liquidating his entire portfolio. Recently, he advised investors to hold their excitement about the latest stock rally. He pointed out that downturns in the past have witnessed several temporary rebounds before finding a bottom. According to him, “silliness” in the market experienced during the pandemic has returned.
Source: https://www.thecoinrepublic.com/2022/08/16/michael-burrys-scion-asset-management-liquidated-all-his-stocks-except-one/