Michael Burry Is Selling These 15 Stocks

Published on September 3, 2021 at 12:23 pm by Usman Kabir in Hedge Funds, News

In this article, we discuss the 15 stocks Michael Burry is selling. If you want to skip our detailed analysis of these stocks, go directly to Michael Burry Is Selling These 5 Stocks.

Hedge fund managers famous for their short-selling exploits have had an eventful few months, especially in the context of the rise of retail investors in the marketplace and the incredible numbers posted by meme stocks through the course of the year. Michael Burry, who leads Scion Asset Management, is one of the most famous short-sellers of all time – Burry accurately predicted the market crash of 2009 and has made several crash predictions since – and manages over $2 billion in assets with holdings in the consumer goods and technology sectors.

Some of the top stocks in the Scion Asset Management portfolio at the end of the second quarter of 2021 were Facebook, Inc. (NASDAQ: FB), Walmart Inc. (NYSE: WMT), Alphabet Inc. (NASDAQ: GOOG), The Kraft Heinz Company (NASDAQ: KHC), and CVS Health Corporation (NYSE: CVS), among others. Burry has been selling some stocks and unveiling bearish bets against others from his portfolio, latest securities filings reveal. He has PUT options worth tens of millions against both Tesla, Inc. (NASDAQ: TSLA) and ARK Innovation ETF (NYSE: ARKK).

The share prices of Tesla, Inc. (NASDAQ: TSLA) and ARK Innovation ETF (NYSE: ARKK) are down from their peaks in the first quarter of this year amid a broader lull around growth stocks that are invested heavily in crypto. Burry, who had made his position on soaring valuations quite clear in several Twitter posts over the past few months, is widely recognized for the handsome returns he has made by betting on value plays. His portfolio value has grown by over $600 million between March and June this year.

The success of Burry has been an exception in the world of finance that is otherwise struggling. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 115 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Michael Burry of Scion Asset Management

Our Methodology

With this context in mind, here is our list of the 15 stocks Michael Burry is selling. These were ranked according to the investment portfolio of Scion Asset Management at the end of the second quarter of 2021.

Only those stocks were selected that the hedge fund sold off entirely in the second quarter of 2021. The analyst ratings of each company are also discussed to provide readers with some more context about their investment decisions.

The hedge fund sentiment around each stock was gauged using the data of 873 hedge funds tracked by Insider Monkey. The stocks are arranged according to the number of hedge fund holders in each company.

Michael Burry Is Selling These Stocks

15. Urstadt Biddle Properties Inc. (NYSE: UBP)

Number of Hedge Fund Holders: 1

Urstadt Biddle Properties Inc. (NYSE: UBP) is a Connecticut-based real estate investment trust. It is placed fifteenth on our list of 15 stocks Michael Burry is selling. Scion Asset Management sold off its entire stake in the real estate firm between March and June this year.

In earnings results for the second fiscal quarter, posted on June 7, Urstadt Biddle Properties Inc. (NYSE: UBP) reported a revenue of close to $33 million, up more than 5% compared to the revenue over the same period last year.

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Urstadt Biddle Properties Inc. (NYSE: UBP) with 291,217 shares worth more than $5.6 million.

Unlike Facebook, Inc. (NASDAQ: FB), Walmart Inc. (NYSE: WMT), Alphabet Inc. (NASDAQ: GOOG), The Kraft Heinz Company (NASDAQ: KHC), and CVS Health Corporation (NYSE: CVS), Urstadt Biddle Properties Inc. (NYSE: UBP) is one of the stocks Michael Burry is selling.

14. Precision Drilling Corporation (NYSE: PDS)

Number of Hedge Fund Holders: 9

Precision Drilling Corporation (NYSE: PDS) is ranked fourteenth on our list of 15 stocks Michael Burry is selling. Precision Drilling Corporation (NYSE: PDS) markets oilfield drilling services and is headquartered in Canada. According to the latest data, the firm first held a stake in the company in the first quarter of 2020. It paid an average price of $21.61 per share on the stake it accumulated, before exiting in the second quarter of 2021. At the end of June, the shares were trading at over $41.

On August 24, investment advisory Canaccord upgraded Precision Drilling Corporation (NYSE: PDS) stock to Buy from Hold with a price target of C$50, noting the recent pullback in the share price was a buying opportunity for investors.

At the end of the second quarter of 2021, 9 hedge funds in the database of Insider Monkey held stakes worth $50 million in Precision Drilling Corporation (NYSE: PDS), up from 6 in the previous quarter worth $25 million.

13. Aerpio Pharmaceuticals, Inc. (NASDAQ: ARPO)

Number of Hedge Fund Holders: 12

Aerpio Pharmaceuticals, Inc. (NASDAQ: ARPO) is placed thirteenth on our list of 15 stocks Michael Burry is selling. The firm is headquartered in Ohio and operates as a biopharmaceutical entity. Securities filings reveal that Scion Asset Management paid an estimated average price of $1.29 per share for the stake it acquired in the company. The fund exited that stake in the second quarter of 2021. At the end of June, the shares were trading at $1.69.

On July 8, investment advisory HC Wainwright upgraded Aerpio Pharmaceuticals, Inc. (NASDAQ: ARPO) stock to Buy from Neutral with a price target of $22, underlining that the firm was on a path to self-sustainment.

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm OrbiMed Advisors is a leading shareholder in Aerpio Pharmaceuticals, Inc. (NASDAQ: ARPO) with 5.1 million shares worth more than $8.7 million.

Unlike Facebook, Inc. (NASDAQ: FB), Walmart Inc. (NYSE: WMT), Alphabet Inc. (NASDAQ: GOOG), The Kraft Heinz Company (NASDAQ: KHC), and CVS Health Corporation (NYSE: CVS), Aerpio Pharmaceuticals, Inc. (NASDAQ: ARPO) is one of the stocks Michael Burry is selling.

12. RPT Realty (NYSE: RPT)

Number of Hedge Fund Holders: 13

RPT Realty (NYSE: RPT) is a New York-based company that owns and runs open-air shopping destinations. It is ranked twelfth on our list of 15 stocks Michael Burry is selling. Latest data shows that Scion Asset Management first acquired a stake in the firm in the third quarter of 2020. It sold off the entire stake in the second quarter of 2021. The fund paid an estimated average price of $5.44 per share on the stake. At the end of June, the shares were trading at $12.98.

On June 8, investment advisory Deutsche Bank maintained a Buy rating on RPT Realty (NYSE: RPT) stock and raised the price target to $17 from $13, highlighting growing retailer demand into real estate as a growth catalyst for the firm.

At the end of the second quarter of 2021, 13 hedge funds in the database of Insider Monkey held stakes worth $34 million in RPT Realty (NYSE: RPT), up from 8 in the previous quarter worth $17 million.

11. Helmerich & Payne, Inc. (NYSE: HP)

Number of Hedge Fund Holders: 15

Helmerich & Payne, Inc. (NYSE: HP) is an Oklahoma-based firm that provides drilling solutions for energy companies. It is placed eleventh on our list of 15 stocks Michael Burry is selling. According to regulatory filings, Scion Asset Management sold off all the stake it held in the company during the second quarter of 2021. It paid an estimated average price of $26.96 per share for the stake. At the end of June, the shares were trading at $32.63.

On July 8, investment advisory Citi upgraded Helmerich & Payne, Inc. (NYSE: HP) stock to Neutral from Sell and raised the price target to $33 from $24, noting that the margins for the appeared to be bottoming and the rig count was rising.

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.

Unlike Facebook, Inc. (NASDAQ: FB), Walmart Inc. (NYSE: WMT), Alphabet Inc. (NASDAQ: GOOG), The Kraft Heinz Company (NASDAQ: KHC), and CVS Health Corporation (NYSE: CVS), Helmerich & Payne, Inc. (NYSE: HP) is one of the stocks Michael Burry is selling.

10. Vector Acquisition Corporation (NASDAQ: VACQ)

Number of Hedge Fund Holders: 15

Vector Acquisition Corporation (NASDAQ: VACQ) is ranked tenth on our list of 15 stocks Michael Burry is selling. The firm operates from California as a special purpose acquisition company. According to the latest filings, Scion Asset Management sold its entire stake in the firm at the end of June 2021. It had paid an average estimated price of $11.84 per share for the stake. At the end of the second quarter of 2021, the shares were trading at $10.89.

Vector Acquisition Corporation (NASDAQ: VACQ) has a market cap of $462 million and a volume of 918,859. Th2 52-week price range of the stock lies between $9.72 and $15.15. The company targets mergers with firms in the technology business.

At the end of the second quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $58 million in Vector Acquisition Corporation (NASDAQ: VACQ), up from 14 in the previous quarter worth $94 million.

9. Ingles Markets, Incorporated (NASDAQ: IMKTA)

Number of Hedge Fund Holders: 16

Ingles Markets, Incorporated (NASDAQ: IMKTA) is placed ninth on our list of 15 stocks Michael Burry is selling. The company is headquartered in North Carolina and runs a chain of supermarket stores. Scion Asset Management first bought a stake in the firm in the fourth quarter of 2020. It sold the entire stake in the second quarter of 2021. The fund paid an estimated average price of $47.54 per share for the stake. At the end of June, the shares were trading at $58.27.

In earnings results for the third fiscal quarter, posted on August 5, Ingles Markets, Incorporated (NASDAQ: IMKTA) reported earnings per share of $3.79 and revenue of $1.28 million, down close to 99% compared to the revenue over the same period last year.

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm GAMCO Investors is a leading shareholder in Ingles Markets, Incorporated (NASDAQ: IMKTA) with 814,550 shares worth more than $47 million.

Unlike Facebook, Inc. (NASDAQ: FB), Walmart Inc. (NYSE: WMT), Alphabet Inc. (NASDAQ: GOOG), The Kraft Heinz Company (NASDAQ: KHC), and CVS Health Corporation (NYSE: CVS), Ingles Markets, Incorporated (NASDAQ: IMKTA) is one of the stocks Michael Burry is selling.

8. Zymeworks Inc. (NYSE: ZYME)

Number of Hedge Fund Holders: 19

Zymeworks Inc. (NYSE: ZYME) is a Canada-based biopharmaceutical firm. It is ranked eighth on our list of 15 stocks Michael Burry is selling. According to regulatory filings, Scion Asset Management sold off its entire stake in the firm between March and June this year. It had paid an estimated average price of $31.58 per share for the stake. At the end of the second quarter of 2021, the shares were trading at $34.69.

On August 5, investment advisory HC Wainwright reiterated a Buy rating on Zymeworks Inc. (NYSE: ZYME) stock but lowered the price target to $44 from $55, citing projected dilution after the second quarter results as the reason behind the move.

At the end of the second quarter of 2021, 19 hedge funds in the database of Insider Monkey held stakes worth $459 million in Zymeworks Inc. (NYSE: ZYME), down from 27 in the preceding quarter worth $473 million.

7. 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 seventh on our list of 15 stocks Michael Burry is selling. Latest filings reveal that Scion Asset Management, which sold off stake in the company during the second quarter of 2021, paid an estimated average price of $10.08 per share for the holding. The shares were trading at $18.88 at the end of June 2021.

In April, investment advisory Fearnley upgraded Genco Shipping & Trading Limited (NYSE: GNK) stock to Buy from Hold and raised the price target to $15 from $9, underlining that the new capital allocation strategy of the firm was targeting low leverage and higher dividends.

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.

Unlike Facebook, Inc. (NASDAQ: FB), Walmart Inc. (NYSE: WMT), Alphabet Inc. (NASDAQ: GOOG), The Kraft Heinz Company (NASDAQ: KHC), and CVS Health Corporation (NYSE: CVS), Genco Shipping & Trading Limited (NYSE: GNK) is one of the stocks Michael Burry is selling.

6. NOW Inc. (NYSE: DNOW)

Number of Hedge Fund Holders: 22

NOW Inc. (NYSE: DNOW) is ranked sixth on our list of 15 stocks Michael Burry is selling. The firm distributes energy and industrial products and is headquartered in Texas. Securities filings show that Scion Asset Management first bought a stake in the company during the fourth quarter of 2020. It sold the stake entirely during the second quarter of 2021. The fund paid an estimated average price of $7.18 per share for the stake. At the end of June, the shares were trading at $9.49.

On July 16, investment advisory Stifel upgraded NOW Inc. (NYSE: DNOW) stock to Buy from hold and raised the price target to $12 from $11, noting that the oil and gas customer spending would likely accelerate and benefit the firm in the coming months.

Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in NOW Inc. (NYSE: DNOW) with 5.3 million shares worth more than $51 million.

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