In this article, we will take a look at how Michael Burry is shorting the market and selling these 5 stocks. To see more such companies, go directly to Michael Burry is Shorting the Market (Again) and Selling these 10 Stocks.
5. Sibanye Stillwater Limited (NYSE:SBSW)
Michael Burry’s Stake in Q1: $6,656,000
Michael Burry had owned 800,000 shares of metals and mining firm Sibanye Stillwater Limited (NYSE:SBSW) during the first quarter of 2023. Sibanye Stillwater Limited (NYSE:SBSW) accounted for about 6% of Scion’s total 13F portfolio as of the end of March. However, during the second quarter, Burry sold his entire stake in Sibanye Stillwater Limited (NYSE:SBSW). Sibanye Stillwater Limited (NYSE:SBSW) shares have lost about 40% in value year to date through August 15.
As of the end of the first quarter of 2023, 18 hedge funds in Insider Monkey’s database of 943 funds reported owning stakes in Sibanye Stillwater Limited (NYSE:SBSW). The biggest stakeholder of Sibanye Stillwater Limited (NYSE:SBSW) during this period was Ryan Schedler and Bradley Shisler’s Condire Investors which owns a $32 million stake in the company.
4. Capital One Financial Corp. (NYSE:COF)
Michael Burry’s Stake in Q1: $7,212,000
Another banking company sold by Michael Burry during the second quarter, Capital One Financial Corp. (NYSE:COF) has seen its shares actually gain by 15% year to date through August 15. Michael Burry owned about 75,000 shares of Capital One Financial Corp. (NYSE:COF) during the first quarter. Capital One Financial Corp. (NYSE:COF) accounted for about 6.74% of the total portfolio of Scion as of the end of March. This entire stake was sold during the second quarter.
In July, Capital One Financial Corp. (NYSE:COF) posted Q2 results. Adjusted EPS in the quarter came in at $3.52 beating estimates by $0.28. Revenue in the quarter jumped 9.5% year over year to $9.01 billion, missing estimates by $130 million.
ClearBridge Value Equity Strategy made the following comment about Capital One Financial Corporation (NYSE:COF) in its first quarter 2023 investor letter:
“We also added Capital One Financial Corporation (NYSE:COF), a largely domestic diversified financial services company with a focus on credit cards that also operates a leading auto lending business. We believe recent regulatory changes such as the Current Expected Credit Losses (CECL) methodology of the U.S. Treasury and the ability of credit card companies to manage credit risks have improved the risk profile of leading credit card businesses but have been underappreciated by the market. With its substantial financial reserves, we believe that Capital One is well-positioned to navigate future economic uncertainty. Additionally, we believe this current market and credit cycle is fundamentally different than prior ones due to stronger consumer balance sheets, excess savings, strong wage growth and strong employment environment. As a result, we believe Capital One’s current price has already been overly discounted, and we expect it to offer compelling upside despite further risks of drawdown when a recession emerges.”
3. Zoom Video Communications, Inc. (NASDAQ:ZM)
Michael Burry’s Stake in Q1: $7,384,000
During the second quarter, Michael Burry sold all 100,000 shares of Zoom Video Communications, Inc. (NASDAQ:ZM) he’d owned during the first quarter of 2023. Once a thriving stock, Zoom Video Communications, Inc. (NASDAQ:ZM) went out of favor in many circles when the coronavirus crisis started to abate especially as companies call their employees back to the office. However, Zoom Video Communications, Inc. (NASDAQ:ZM)’s Q1 results came in stronger than expected as it focuses on Enterprise growth.
As of the end of the first quarter of 2023, 40 hedge funds out of the 943 hedge funds tracked by Insider Monkey reported owning stakes in Zoom Video Communications, Inc. (NASDAQ:ZM), up from 31 funds in the previous quarter. This shows Zoom Video Communications, Inc. (NASDAQ:ZM) shares saw a jump in hedge fund sentiment during the first quarter despite economic headwinds and recession fears that didn’t bode well for growth companies.
2. Alibaba Group Holding Limited (NYSE:BABA)
Michael Burry’s Stake in Q1: $10,218,000
Alibaba Group Holding Limited (NYSE:BABA) ranks 2nd in our list of the stocks sold by Michael Burry during the second quarter, as the Big Short dumped all 100,000 BABA shares he’d owned during the first quarter of 2023. On the other hand, latest data shows that Saudi Arabia’s sovereign wealth fund, The Public Investment Fund (PIF), upped its stake in Alibaba Group Holding Limited (NYSE:BABA) to 1.04 million shares.
Alibaba Group Holding Limited (NYSE:BABA) shares are currently in the limelight after the company posted solid Q1 results after which the stock received upgrades and praise from several analysts firm. Alibaba Group Holding Limited (NYSE:BABA)’s adjusted EPADS in the quarter came in at $2.40 beating estimates by $0.39. Revenue in the quarter jumped 14% year over year to $32.29 billion, surpassing estimates by $1.08 billion.
As of the end of the first quarter of 2023, 128 hedge funds in Insider Monkey’s database of funds reported owning stakes in Alibaba Group Holding Limited (NYSE:BABA).
1. JD.Com Inc. (NASDAQ:JD)
Michael Burry’s Stake in Q1: $10,972,500
Michael Burry bailed out on Chinese e-commerce company JD.Com Inc. (NASDAQ:JD) during the second quarter, dumping all 250,000 shares of the company he had owned during the first quarter. JD.Com Inc. (NASDAQ:JD) shares have lost about 36% year to date through August 15.
As of the end of the first quarter of 2023, 59 hedge funds out of the 943 funds reported owning stakes in JD.Com Inc. (NASDAQ:JD). The biggest stakeholder of JD.Com Inc. (NASDAQ:JD) during this period was Chase Coleman and Feroz Dewan’s Tiger Global Management LLC which owns a $1 billion stake in the company.
Baron Emerging Markets Fund made the following comment about JD.com, Inc. (NASDAQ:JD) in its first quarter 2023 investor letter:
“JD.com, Inc. (NASDAQ:JD) is one of the three largest e-commerce platforms in China. Shares declined after the company reported a slowdown in fourth quarter sales and commented that deliberate culling of unprofitable SKUs would also be a drag on headline revenue growth in the first half of 2023. We believe the slowdown was driven by the peak in Chinese COVID lockdowns, which have since ended, and the elimination or reduction of unprofitable business is better for long-term margins and returns on capital. We remain investors.”
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