In this article, we discuss the stocks that Michael Burry is betting against and selling. If you want to read our detailed analysis of these stocks, go directly to Michael Burry is Betting Against Cathie Wood’s Fund, Tesla and Selling These 7 Other Stocks.
5. Helmerich & Payne, Inc. (NYSE: HP)
Number of Hedge Fund Holders: 15
Helmerich & Payne, Inc. (NYSE: HP) is ranked fifth on our list of stocks that Michael Burry is betting against and selling. The company markets drilling solutions for energy firms and is based in Oklahoma. The Burry-led fund has sold its entire stake in Helmerich & Payne, Inc. (NYSE: HP), latest data shows.
On July 16, investment advisory Bank of America upgraded Helmerich & Payne, Inc. (NYSE: HP) stock to Neutral from Underperform, noting that the US onshore sector was expected to grow in the oil domain over the coming months compared to international competitors.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Two Sigma Advisors is a leading shareholder in Helmerich & Payne, Inc. (NYSE: HP) with 1.2 million shares worth more than $40 million.
4. Genco Shipping & Trading Limited (NYSE: GNK)
Number of Hedge Fund Holders: 19
Genco Shipping & Trading Limited (NYSE: GNK) is a New York-based ocean transportation company. It is placed fourth on our list of stocks that Michael Burry is betting against and selling. According to securities filings, Scion Asset Management sold off its entire stake in Genco Shipping & Trading Limited (NYSE: GNK) between March and June this year.
On May 7, investment advisory B Riley maintained a Buy rating on Genco Shipping & Trading Limited (NYSE: GNK) stock and raised the price target to $22 from $14, underlining continued strength in the dry bulk market as a growth catalyst for the firm.
At the end of the second quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $175 million in Genco Shipping & Trading Limited (NYSE: GNK), down from 22 in the preceding quarter worth $121 million.
3. ARK Innovation ETF (NYSE: ARKK) PUT
Number of Hedge Fund Holders: N/A
ARK Innovation ETF (NYSE: ARKK) is an exchange traded fund owned and managed by ARK Investment Management. It is ranked third on our list of stocks that Michael Burry is betting against and selling. The fund invests at least 65% of assets in companies that are working on disruptive innovation across the world. ARK Innovation ETF (NYSE: ARKK) benchmarks the performance of the portfolio against the S&P 500 Index and the MSCI World Index. It was launched in 2014 and returned more than 150% to investors last year.
Latest data shows that Scion Asset Management had PUT options against 235,500 ARK Innovation ETF (NYSE: ARKK) shares. These represent 1.47% of the portfolio and are worth close to $31 million. The stake in a new addition to the portfolio compared to the first quarter.
ARK Innovation ETF (NYSE: ARKK) has more than $22 billion in assets under management with an expense ratio of 0.75%. The volume is 5,074,287 and the 52-week price range lies between $81 and $159.
2. iShares 7-10 Year Treasury Bond ETF (NASDAQ: IEF) PUT
Number of Hedge Fund Holders: N/A
iShares 7-10 Year Treasury Bond ETF (NASDAQ: IEF) is placed second on our list of stocks that Michael Burry is betting against and selling. It is an exchange traded fund launched by BlackRock that invests in fixed income markets. It tracks the investment results of ICE US Treasury 7-10 Year Bond Index and generally invests 90% of assets in bonds of the index. The index measures the performance of public obligations of the US Treasury. iShares 7-10 Year Treasury Bond ETF (NASDAQ: IEF) has a 3-year price return of close to 14% and a five-year return of over 4.6%.
According to regulatory filings, Scion Asset Management had PUT options against over 1.9 million iShares 7-10 Year Treasury Bond ETF (NASDAQ: IEF) shares at the end of June 2021. The shares are valued at $280 million and represent over 13% of the portfolio.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based firm Citadel Investment Group is a leading shareholder in iShares 7-10 Year Treasury Bond ETF (NASDAQ: IEF) with 18.9 million shares worth more than $4.3 billion.
1. Tesla, Inc. (NASDAQ: TSLA) PUT
Number of Hedge Fund Holders: 60
Tesla, Inc. (NASDAQ: TSLA) is ranked first on our list of stocks that Michael Burry is betting against and selling. The company is in the electric vehicle and clean energy business. It operates from California. According to the latest filings, Scion Asset Management had PUT options against more than 1 million shares in Tesla, Inc. (NASDAQ: TSLA) at the end of June 2021. These represent over 35% of the portfolio and are valued at more than $731 million.
On August 9, investment advisory Jefferies upgraded Tesla, Inc. (NASDAQ: TSLA) stock to Buy from Hold and raised the price target to $850 from $700. Philippe Houchois, an analyst at the firm, issued the ratings update.
At the end of the second quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $9 billion in Tesla, Inc. (NASDAQ: TSLA), down from 62 in the preceding quarter worth $10 billion.
Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ: TSLA) in its Q1 2021 investor letter:
“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. The stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”
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