Michael Burry is Betting Heavily on These 3 Stocks

1. The GEO Group, Inc. (NYSE:GEO)

Value of Scion Asset Management‘s 13F Position: $15.5 million

Number of Hedge Fund Shareholders: 19

The GEO Group, Inc. (NYSE:GEO) is the only holdover from Michael Burry’s Q2 13F portfolio and it remains his top stock pick heading into the final quarter of 2022. After building a new 501,360-share position in the company during Q2, Burry quadrupled his stake during Q3, ending the quarter with 2.02 million shares.

If Burry was banking on The GEO Group, Inc. (NYSE:GEO) (and CoreCivic for that matter) benefiting from a potential red wave overtaking the senate and possibly leading to tougher crime legislation being enacted, those hopes have been dashed. Without that potential catalyst, he’s left holding a stock that looks cheap by some metrics (7x forward P/E), but which doesn’t otherwise have much momentum going for it. GEO’s revenue will inch up this year but remain beneath 2019 levels, while the company’s net income is less than half what it was three years ago.

The GEO Group, Inc. (NYSE:GEO) is another Michael Burry stock that’s been crushed in recent years, but which appears to have finally stabilized. Whether it can actually rally to a higher level any time soon remains to be seen. There’s been a slow uptick in hedge fund ownership of the stock in recent quarters, with Cliff Asness’ AQR Capital Management and Paul Tudor Jones’ Tudor Investment Corp among the buyers.

For more of the latest stock picks worth considering for your portfolio, check out 12 Best Depressed Stocks To Buy and 10 Cheap Monthly Dividend Stocks To Buy.

Disclosure: None.

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