In this article, we discuss the 4 best stock picks and portfolio performance of Michael Burry. If you want to read our detailed analysis of these stocks, go directly to the Michael Burry Stock Portfolio Performance in 2021: 8 Best Picks.
4. CVS Health Corporation (NYSE:CVS)
Number of Hedge Fund Holders: 61
Gain in Share Price in 2021: 47%
CVS Health Corporation (NYSE:CVS) provides healthcare services. Latest data shows that Scion Asset Management owned 200,000 shares of CVS Health Corporation (NYSE:CVS) worth around $16.9 million at the end of September, representing over 40% of the portfolio. Burry first bought a stake in CVS Health Corporation (NYSE:CVS) in the third quarter of 2020. This stake consisted of 150,000 shares bought at an average price of $62.22 per share. He then sold off that entire stake in the next quarter before buying a new position in CVS Health Corporation (NYSE:CVS) in the first quarter of 2021.
Since then, Burry has nearly doubled his bet CVS Health Corporation (NYSE:CVS). Along with Burry, analysts are also bullish on CVS Health Corporation (NYSE:CVS). On January 11, Bernstein analyst Lance Wilkes maintained an Outperform rating on the stock and raised the price target to $116 from $111, underlining that the company seemed on a “strategic path” to developing an omni-channel care business.
The hedge fund sentiment around CVS Health Corporation (NYSE:CVS) also makes for positive reading. Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Harris Associates is a leading shareholder in CVS Health Corporation (NYSE:CVS) with 8 million shares worth more than $685 million. At the end of the third quarter of 2021, 61 hedge funds in the database of Insider Monkey held stakes worth $1 billion in CVS Health Corporation (NYSE:CVS).
In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and CVS Health Corporation (NYSE:CVS) was one of them. Here is what the fund said:
“We sold our position in CVS Health Corp. to allocate capital to companies with larger margins of safety. During the five years that we owned CVS Health Corp., the company acquired Aetna. At the time, we also owned Aetna, and we believed the combination of the two companies would create additional value. After the acquisition, its business performance has been disappointing. We reevaluated our assumptions and determined its value has not grown.”
3. CoreCivic, Inc. (NYSE:CXW)
Number of Hedge Fund Holders: 15
Gain in Share Price in 2021: 48%
CoreCivic, Inc. (NYSE:CXW) owns and runs correctional and detention facilities. Hedge funds have been bullish on the stock in the past few months. At the end of the third quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $84 million in CoreCivic, Inc. (NYSE:CXW), up from 13 in the previous quarter worth $97 million.
Securities filings reveal that Scion Asset Management owned 412,126 shares in CoreCivic, Inc. (NYSE:CXW) worth more than $3.6 million at the end of September 2021, representing 8.79% of the portfolio. CoreCivic, Inc. (NYSE:CXW) has consistently featured in the Burry portfolio since the fourth quarter of 2020. However, after adding to the initial stake in the first two quarters of 2021, Burry slashed his position in CoreCivic, Inc. (NYSE:CXW) by almost 70% in the third quarter.
Elite hedge funds, however, continue to see CoreCivic, Inc. (NYSE:CXW) in a positive light. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Mason Capital Management is a leading shareholder in CoreCivic, Inc. (NYSE:CXW) with 6 million shares worth more than $53 million.
2. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 156
Gain in Share Price in 2021: 67%
Alphabet Inc. (NASDAQ:GOOG) is a diversified tech firm. Scion Asset Management first bought a sizeable stake in Alphabet Inc. (NASDAQ:GOOG) during the second quarter of 2020. This stake consisted of 80,000 shares at an average price of around $1,500 per share. Burry then sold that stake off completely in the fourth quarter of 2020 before opening a new position in early 2021. However, during the third quarter, this stake was sold off completely as well.
Alphabet Inc. (NASDAQ:GOOG) has generated a lot of hedge fund interest in the past few months. Among the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG) with 2.9 million shares worth more than $7.8 billion.
In its Q1 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:
“Large-cap tech companies have been resilient through the pandemic—Alphabet among them. A top contributor, Alphabet’s Play Store and Google Cloud are in demand as businesses accelerate online activity which, along with strong YouTube user growth, is helping stabilize temporarily weaker search ad revenue trends. Through the lens of our disciplined bottom-up research process, we view Alphabet as one of the best businesses in the world, capable of expanding revenues at a rapid rate for years to come, with a bullet proof balance sheet and an average asking price. It’s a name we’ve owned since 2012 and for which we continue to have high hopes regarding future prospects.”
1. Golden Ocean Group Limited (NASDAQ:GOGL)
Number of Hedge Fund Holders: 13
Gain in Share Price in 2021: 94%
Golden Ocean Group Limited (NASDAQ:GOGL) owns and runs a fleet of dry bulk vessels. Burry bought around 530,000 shares of Golden Ocean Group Limited (NASDAQ:GOGL) in the first quarter of 2021 for an average price of $6.02 per share, just as normal business was resuming after the pandemic. He then handsomely added to that stake in the second quarter of 2021 before selling it off completely during the third quarter.
Golden Ocean Group Limited (NASDAQ:GOGL) was one of the top economic recovery plays for investors in 2021. Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Golden Ocean Group Limited (NASDAQ:GOGL) with 1.4 million shares worth more than $15 million.
You can also take a peek at 12 Best Big Tech Stocks to Buy Right Now and 10 Stocks That Just Received Sell Rating from Analysts.
