Michael Burry’s Top 5 Stock Picks For 2024

In this article, we discuss Michael Burry’s top 5 stock picks for 2024. If you want to see other top Michael Burry stock picks, head over to Michael Burry’s Top 15 Stock Picks For 2024.

5. Citigroup Inc. (NYSE:C)

Scion Asset Management’s Stake Value: $5.14 million

Number of Hedge Fund Holders: 87

Citigroup Inc. (NYSE:C) is a global financial services holding company that offers a range of financial products and services to individuals, businesses, governments, and institutions worldwide. The company operates through five segments – Services, Markets, Banking, U.S. Personal Banking, and Wealth. One of Michael Burry’s stock picks for the closing quarter of 2023 is Citigroup Inc. (NYSE:C). He invested in 100,000 shares, which are valued at $5.14 million.

On January 12, Citigroup Inc. (NYSE:C) declared a $0.53 per share quarterly dividend, in-line with previous. The dividend was paid on February 23.

According to Insider Monkey’s fourth quarter database, 87 hedge funds were bullish on Citigroup Inc. (NYSE:C), an increase from 79 funds in the preceding quarter. Warren Buffett’s Berkshire Hathaway is the leading position holder in the company, with 55.24 million shares valued at $2.84 billion.

Patient Capital Management stated the following regarding Citigroup Inc. (NYSE:C) in its fourth quarter 2023 investor letter:

“Citigroup Inc. (NYSE:C), run by Jane Fraser since 2021, is on a multi-year journey to reorganize the business and reach a return on tangible common equity of 11-12% by 2025-2026 (and higher further out). Citigroup is finally taking the hard actions necessary, cutting unprofitable departments, taking out middle management layers, and reducing overall headcount. We have high confidence Citi will hit its targets.”

4. Oracle Corporation (NYSE:ORCL)

Scion Asset Management’s Stake Value: $5.27 million

Number of Hedge Fund Holders: 100

Oracle Corporation (NYSE:ORCL) provides a range of products and services designed for enterprise information technology needs globally. It offers Oracle Cloud, which includes software applications like Oracle Fusion Cloud ERP, Oracle Fusion Cloud EPM, Oracle Fusion Cloud SCM, and more. These applications cater to different aspects of business operations, helping organizations manage their resources and improve efficiency. Placed among Michael Burry’s stock picks for Q4 2023 is Oracle Corporation (NYSE:ORCL). Burry purchased 50,000 shares of the company worth $5.27 million in the December quarter.

On December 11, Oracle Corporation (NYSE:ORCL) declared a $0.40 per share quarterly dividend, in-line with previous. It was paid on January 25.

According to Insider Monkey’s fourth quarter database, 100 hedge funds were bullish on Oracle Corporation (NYSE:ORCL), up from 88 funds in the previous quarter. Jean-Marie Eveillard’s First Eagle Investment Management held the largest position in the company, with 18.52 million shares valued at $1.95 billion.

Madison Sustainable Equity Fund stated the following regarding Oracle Corporation (NYSE:ORCL) in its fourth quarter 2023 investor letter:

“Oracle Corporation (NYSE:ORCL) reported a disappointing second quarter due to supply constraints. Cloud revenue was below expectations as Oracle made planning decisions to accommodate some large-scale Oracle Cloud Infrastructure (OCI) clients that take longer to bring online. We continue to believe that Oracle has a unique position in Generative AI workloads and continue to like its position and strategy.”

3. HCA Healthcare, Inc. (NYSE:HCA)

Scion Asset Management’s Stake Value: $5.41 million

Number of Hedge Fund Holders: 72

HCA Healthcare, Inc. (NYSE:HCA) manages hospitals and healthcare facilities across the United States. These facilities provide a range of medical services, including inpatient care, intensive care, cardiac care, diagnostics, and emergency services. During the fourth quarter of 2023, HCA Healthcare, Inc. (NYSE:HCA) was among Michael Burry’s stock picks. He held 20,000 shares of the stock valued at $5.41 million.

On January 30, HCA Healthcare, Inc. (NYSE:HCA) declared a $0.66 per share quarterly dividend, a 10% increase from the previous dividend of $0.60. It is to be paid on March 29 to shareholders on record as of March 15.

According to Insider Monkey’s fourth quarter database, 72 hedge funds were bullish on HCA Healthcare, Inc. (NYSE:HCA), compared to 71 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management held the largest stake in the company, consisting of 4.5 million shares worth $1.22 billion.

Diamond Hill Large Cap Strategy made the following comment about HCA Healthcare, Inc. (NYSE:HCA) in its Q3 2023 investor letter:

“Health care facilities operator HCA Healthcare, Inc. (NYSE:HCA) and medical device company Abbott Laboratories were also among our bottom contributors. Despite solid fundamental performance, HCA Healthcare experienced some share price weakness during Q3. This appears to be more a result of short-term noise and sell-side expectations rather than any significant operational or financial issues.”

2. JD.com, Inc. (NASDAQ:JD)

Scion Asset Management’s Stake Value: $5.78 million

Number of Hedge Fund Holders: 56

JD.com, Inc. (NASDAQ:JD) is a company based in China that is involved in supply chain-based technologies and services. Its products include computers, communication and consumer electronics, home appliances, food and beverages, baby and maternity products, furniture and household goods, cosmetics, and personal care items, among others. JD.com, Inc. (NASDAQ:JD) is ranked high among the top Michael Burry stock picks in the fourth quarter of 2023, with a stake of 200,000 shares worth $5.78 million. Burry increased his position in JD by 60% in the December quarter. 

According to Insider Monkey’s fourth quarter database, 56 hedge funds were bullish on JD.com, Inc. (NASDAQ:JD), an increase from 53 funds in the previous quarter. Chase Coleman’s Tiger Global Management held a significant position in the company, with 8.8 million shares valued at $254.35 million.

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.”

1. Alibaba Group Holding Limited (NYSE:BABA)

Scion Asset Management’s Stake Value: $5.81 million

Number of Hedge Fund Holders: 116

Alibaba Group Holding Limited (NYSE:BABA) offers technology infrastructure and marketing solutions to assist merchants, brands, retailers, and businesses in engaging with their users and customers in China and globally. The company operates through seven segments – China Commerce, International Commerce, Local Consumer Services, Cainiao, Cloud, Digital Media and Entertainment, and Innovation Initiatives and Others. Alibaba Group Holding Limited (NYSE:BABA) is at the forefront of Michael Burry’s stock picks during Q4 2023, with a stake of 75,000 shares worth $5.81 million. Burry strengthened his Alibaba stake by 50% in the last quarter of 2023. 

According to Insider Monkey’s fourth quarter database, 116 hedge funds were bullish on Alibaba Group Holding Limited (NYSE:BABA), in contrast to the preceding quarter when 110 funds had invested in the stock. David Tepper’s Appaloosa Management held a significant position in the company, with 4.35 million shares valued at $337 million.

Baron Emerging Markets Fund stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its fourth quarter 2023 investor letter:

“Alibaba Group Holding Limited (NYSE:BABA) is the largest retailer and e-commerce company in China. Alibaba operates shopping platforms Taobao and Tmall and owns 33% of Ant Group, which operates Alipay, China’s largest third-party online payment provider. Shares of Alibaba were down in the fourth quarter due largely to the delay of the previously announced spin-off of its cloud division. Quarterly results were roughly in line with Street expectations, with strength in profitability. We retain conviction that Alibaba is well positioned to benefit from the ongoing growth in online commerce and cloud development in China. While the company is seeing early progress in its efforts to re-invigorate customer engagement and retention as well as merchant investment initiatives, we believe this investment will likely take some time to flow through to accelerating earnings growth. As such, we remain investors but have reduced our position as we monitor further progress.”

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