In this article, we will take a look at the top 5 holdings of Michael Burry. If you want to read our detailed analysis of Michael Burry’s history, and investment philosophy, go directly to Michael Burry is Shorting Tesla and Buying These 10 Stocks Instead.
5. NetApp, Inc. (NASDAQ: NTAP) CALL
Number of Hedge Fund Holders: 34
NetApp, Inc. (NASDAQ: NTAP) is a California-based data management company that also offers cloud services. It was founded in 1992 and is placed fifth on our list of top 10 holdings of Michael Burry. The firm represents over 1.5% of the total investment portfolio of Scion Asset Management with 300,000 shares valued at over $21 million. Over the past year, the company stock has returned more than 65% to investors. The firm is one of the biggest in the world and is a decade-long member of the Fortune 500.
NetApp, Inc. (NASDAQ: NTAP) is a good option for income investors as it regularly pays a dividend. In February, the firm declared a dividend of $0.48 per share, in line with previous. The forward yield was 2.77%.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in NetApp, Inc. (NASDAQ: NTAP) with 2.3 million shares worth more than $158 million.
4. CVS Health Corporation (NYSE: CVS) CALL
Number of Hedge Fund Holders: 56
CVS Health Corporation (NYSE: CVS) is a Rhode Island-based healthcare firm that owns and runs retail pharmacy stores. It was founded in 1963 and is ranked fourth on our list of top 10 holdings of Michael Burry. Scion Asset Management, led by Burry, owns 400,000 shares in the company worth over $30 million. This comprises close to 2.2% of the entire investment portfolio of the asset management firm. CVS stock has returned more than 39% to investors in the past year.
CVS Health Corporation (NYSE: CVS) stock was given an Outperform rating by investment advisory RBC Capital Markets on May 5 with a price target of $91, implying a 13.8% upside potential, on the back of strong quarterly results posted earlier.
At the end of the fourth quarter of 2020, 56 hedge funds in the database of Insider Monkey held stakes worth $96 million in CVS Health Corporation (NYSE: CVS), down from 61 in the preceding quarter worth $117 million.
In one of its investor letters, VLTAVA Fund highlighted a few stocks and CVS Health Corp (NYSE:CVS) is one of them. Here is what VLTAVA Fund said:
“During the past quarter, we acquired one new position, CVS Health Corporation. It is a relatively large American company with sales around the same level as Apple. CVS is a health care company. To put it simply, its business can be divided into three areas: a retail pharmacies chain, pharmacy benefit management services, and health insurance.
We have been following CVS for a long time. We began monitoring the company more closely in 2018, when CVS acquired the health insurance company Aetna, a direct competitor of Humana, into which we first invested in 2009. We like CVS’s new integrated business model, but, as tends to be the case with such a large acquisition, it often brings with it some problems. In most cases, acquisitions prove to be overpriced and come with large debt and integration issues. We decided to wait and see how things developed. Now, two years later, integration has not caused fundamental problems, the debt has been declining rather quickly, and the cost of the acquisition has long been reflected in the stock price. Today that price is around the same level as it was in 2013 and meanwhile the earnings per share have doubled. We acquired CVS at 7.5 times this year’s earnings and with a double-digit free cash flow return.”
3. Zymeworks Inc. (NYSE: ZYME)
Number of Hedge Fund Holders: 28
Zymeworks Inc. (NYSE: ZYME) is a Canada-based biotechnology firm that develops protein therapeutics for the treatment of cancer as well as for autoimmune and inflammatory diseases. Burry has invested in more than 281,000 shares of the biotech company worth over $8.8 million. This value represents almost 0.65% of the total investment portfolio of Scion Asset Management.
In earnings for the first quarter of 2021 posted on May 5, Zymeworks Inc. (NYSE: ZYME) reported a revenue of $0.64 million, down close to 92% year-on-year and missing market predictions by over $5.5 million.
At the end of the fourth quarter of 2020, 28 hedge funds in the database of Insider Monkey held stakes worth $688 million in Zymeworks Inc. (NYSE: ZYME), down from 29 in the preceding quarter worth $748 million.
2. Ingles Markets, Incorporated (NASDAQ: IMKTA)
Number of Hedge Fund Holders: 20
Ingles Markets, Incorporated (NASDAQ: IMKTA) is a North Carolina-based supermarket chain founded in 1963. The company represents 0.68% of the investment portfolio of Burry’s Scion Asset Management, with 150,000 shares worth over $9.2 million. Ingles Markets stock has returned more than 44% to investors over the course of the past twelve months. The firm operates close to 200 supermarkets, mostly in the southern part of the United States.
On May 5, Ingles Markets, Incorporated (NASDAQ: IMKTA) posted earnings for the second fiscal quarter, reporting a revenue of more than $1.1 billion and earnings per share of $2.58. The revenue number was over 2.5% higher compared to 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 1 million shares worth more than $42 million.
1. CoreCivic, Inc. (NYSE: CXW)
Number of Hedge Fund Holders: 18
CoreCivic, Inc. (NYSE: CXW) is a Tennessee-based company that owns and runs prisons and federal detention centers across the United States. Scion Asset Management, controlled by Burry, owns more than 1 million shares of CoreCivic worth more than $9.9 million. This is close to 0.73% of the total investment portfolio of the asset management company. CoreCivic stock has returned more than 22% to investors year-to-date.
CoreCivic, Inc. (NYSE: CXW) missed market estimates for revenue in quarterly results posted on May 5. According to the earnings report, the firm made a revenue of over $454 million against market predictions exceeding $469 million.
At the end of the fourth quarter of 2020, 18 hedge funds in the database of Insider Monkey held stakes worth $67 million in CoreCivic, Inc. (NYSE: CXW), down from 19 in the previous quarter worth $54 million.
You can also take a peek at 10 Best Travel Stocks to Buy Right Now, and 10 Best Automotive Stocks to Invest in Now.
