Michael Burry is in the news for two reasons. One, he has revealed his Q1’2024 portfolio that shows Burry is once again swimming against the tide (more on that later). Second, amid the return of Roaring Kitty on Twitter, meme stock boys on Reddit and Twitter are recalling how Burry was the first notable investor who started piling into GameStop Corp (NYSE:GME), long before it became famous due to the historic meme stock rally and short squeeze episodes of 2021. Michael Burry, in the fourth quarter of 2018, bought a $6.8 million position in GameStop Corp (NYSE:GME). Over the next few quarters he bought and sold the stock, following the classic Burry playbook, before liquidating his entire stake in the company in the third quarter of 2020.
Burry rose to limelight after accurately predicting the 2008 US housing crash, but over the past several years his persistent warnings about recessions and market crashes have turned out to be wrong. After betting against the broader semiconductor industry, Burry closed his short position in iShares Semiconductor ETF(SOXX) in the last quarter of 2023. He also closed his bets against the S&P 500 and the Nasdaq 100 in the third quarter of 2023.
Filings for the first quarter of 2024 show Burry was busy buying many new stocks and dumping some. In this article we will take a look at some important stocks that account for about 42% of Burry’s Q1 portfolio, which was worth about $103 million as of the end of March 2024.
To see more important stocks in Burry’s portfolio, click 8 Stocks Michael Burry Has Invested 50% of His Portfolio In.
Michael Burry of Scion Asset Management
Sprott Physical Gold Trust (NYSE:PHYS)
Michael Burry’s Q1’2024 Stake: $7,624,612
Percentage of Burry’s Portfolio: 7.36%
Michael Burry added exposure to gold in the first quarter by investing a whopping $7.62 million in Sprott Physical Gold Trust (NYSE:PHYS) that invests in physical gold bullion. Sprott Physical Gold Trust (NYSE:PHYS) is up about 16% so far this year. This makes gold Burry’s 5th largest position as of Q1. It accounts for about 7.36% of his total portfolio.
Citigroup Inc (NYSE:C)
Michael Burry’s Q1’2024 Stake: $7,905,000
Percentage of Burry’s Portfolio: 7.63%
Scion Asset Management increased its stake in Citigroup Inc (NYSE:C) by 25% in the first quarter of 2023, closing the period with 125,000 shares of the bank worth about $7.9 million. Citigroup Inc (NYSE:C) accounts for about 7.65 of Scion’s total Q1 portfolio. Michael Burry opened a position in Citigroup Inc (NYSE:C) in Q4’2023, buying 100,000 shares of Citigroup Inc (NYSE:C). The investment has been rewarding Burry as Citigroup Inc (NYSE:C) shares are up 23% this year through May 16.
Patient Capital Opportunity Equity Strategy stated the following regarding Citigroup Inc. (NYSE:C) in its first quarter 2024 investor letter:
“Citigroup Inc. (NYSE:C) gained 24.1% in the quarter continuing its uptrend from 4Q. The company is on a multi-year journey to reorganize the business and reach return on tangible common equity of 11-12% by 2026 (and higher further out). Citigroup is finally taking the hard actions necessary, cutting unprofitable departments, taking out middle management layers, and reducing overall headcount. As of early March, the company was 70% done with its business exits and had reduced management layers by 1/4th. We have high confidence Citi will hit its targets. In the meantime, the company is returning cash to shareholders, which could meaningfully increase if the Basel III capital proposal is changed.”
HCA Healthcare Inc. (NYSE:HCA)
Michael Burry’s Q1’2024 Stake: $8,338,250
Percentage of Burry’s Portfolio: 8.05%
Healthcare facilities provider HCA Healthcare Inc. (NYSE:HCA) is one of the top stock picks of Michael Burry in 2024. Burry bought a stake in HCA Healthcare Inc. (NYSE:HCA) in the last quarter of 2023 after a long hiatus (Burry sold his entire stake in HCA Healthcare Inc. (NYSE:HCA) back in 2016). He increased his stake in HCA Healthcare Inc. (NYSE:HCA) by 25% in the first quarter, ending the period with an $8.34 million stake.
Over the past one year HCA Healthcare Inc. (NYSE:HCA) shares have gained about 18%. The stock accounts for about 8% of Michael Burry’s total Q1 portfolio.
Oakmark Equity and Income Fund stated the following regarding HCA Healthcare, Inc. (NYSE:HCA) in its first quarter 2024 investor letter:
“We eliminated one position, HCA Healthcare, Inc. (NYSE:HCA), during the quarter as the stock traded at our estimate of fair value. HCA was a very good investment and more than quadrupled from our original investment price in 2016. We believe HCA is a well-managed business with the best collection of assets in the hospital space. Hospital stocks tend to be much more volatile than their actual intrinsic value, and we would gladly purchase HCA again if the discount to value warrants.”
Alibaba Group Holding Limited (NYSE:BABA)
Michael Burry’s Q1’2024 Stake: $9,045,000
Percentage of Burry’s Portfolio: 8.74%
Alibaba Group Holding Limited (NYSE:BABA) is one of the top stock picks of Michael Burry in 2024. He’s been increasing his hold in the Chinese e-commerce giant since the third quarter of 2023, when he bought 50,000 shares in Alibaba Group Holding Limited (NYSE:BABA). In the fourth quarter, Burry added to his position in Alibaba Group Holding Limited (NYSE:BABA), ending the year with 75,000 shares of Alibaba Group Holding Limited (NYSE:BABA). In the March quarter, Burry again piled into the stock, increasing his position in Alibaba Group Holding Limited (NYSE:BABA) by 67%.
Alibaba Group Holding Limited (NYSE:BABA) shares have gained about 8% so far this year. Baird recently said that it’s seeing some “early momentum” in Alibaba Group Holding Limited (NYSE:BABA) as Alibaba Group Holding Limited (NYSE:BABA) focuses more on customers and Cloud growth.
Artisan Select Equity Fund stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its fourth quarter 2023 investor letter:
“Pretty much all of our holdings rose during the quarter. Only one stock declined by more than a couple of percent—Alibaba Group Holding Limited (NYSE:BABA), which was down 9% for the quarter and 12% for the year. This investment continues to be a disappointment. We estimate the shares are trading at around 5X EBITA—a valuation normally reserved for a company with evaporating profits. While it’s true Alibaba is underperforming its peers in the market, the fact is it remains the market leader in its core businesses, and the business is still growing. In the most recent quarter, revenues grew 9% and profits grew 26%.It’s not evaporating.
The management seems to be making meaningful changes designed to enhance shareholder value, including structural changes to improve profitability and restore its competitive position. It is monetizing non-core assets and making improvements in capital allocation. A lot of good things are happening that are not yet recognized in the share price. There are reasons—primarily geopolitical—for this, but at the current valuation, we could easily see the shares double and they would still be cheap.”
JD.Com Inc (NASDAQ:JD)
Michael Burry’s Q1’2024 Stake: $9,860,400
Percentage of Burry’s Portfolio: 9.52%
While everyone (including Warren Buffett) in the US is fleeing Chinese stocks amid geopolitical uncertainty and US government’s new tariffs, Burry is piling into some of the biggest Chinese stocks, cementing his status as a contrarian investor and true maverick. Scion Asset Management increased its stake in the Chinese ecommerce company by 80% in the first quarter, ending the period with a $9.8 million stake. JD.Com Inc (NASDAQ:JD) shares have gained about 23% year to date through May 16.
These were just 5 stocks in Burry’s portfolio.
Click to continue reading and see 8 Other Stocks Michael Burry Has 50% of His Portfolio Invested In.
Disclosure: None