We recently published a list of Michael Burry’s Top Holdings Were Gaining While NVDA Was Crashing. In this article, we are going to take a look at where Molina Healthcare, Inc. (NYSE:MOH) stands against other Michael Burry’s top Holdings that were gaining while NVDA was crashing.
Michael Burry’s name is synonymous with contrarian investing strategies, being one of the few investors who bet against the housing market and profiting from the subprime mortgage crisis between 2007 and 2010. His stance on the real estate market in 2008 made the American investor and hedge fund manager famous enough to make it in the 2015 film “The Big Short,” where he was portrayed by Christian Bale.
Over the years, Burry, who established a renowned and well-regarded California-based hedge fund Scion Asset Management, LLC in 2013, often made headlines for his recession warnings and market crash “predictions”. However, with warnings about economic downturns fizzling out, Burry’s reputation as both an expert and hedge fund manager was often at stake.
But even though some of his recession warnings have not played out as predicted, Burry remains one of the market geniuses whose moves investors value and follow as explained in our recent survey of Michael Burry’s portfolio in 2024.
His firm has achieved a return of over 160% over the past decade, outperforming the S&P 500 during that time, according to Ticker Nerd.
READ ALSO: Michael Burry Stock Portfolio: Top 8 Stock Picks and 10 Cheapest Stocks Insiders Are Buying Recently
Scion Asset Management manages hedge funds with discretionary assets under management of $196,206,549 (as of March 2024). In its fourth quarter SEC 13F filing on February 14, Burry’s firm disclosed a total of 13 security holdings with a portfolio value of $77,435,131 and a top 10 holdings concentration of 93.62%.
Burry wrapped up 2024 being cautiously optimistic regarding long-term prospects in terms of China’s online retail market, given ongoing regulatory and macroeconomic uncertainties in the Asian country. In the quarter ending December 31, he cut the stake in two of his top three investments in Chinese technology before the January release of DeepSeek’s latest AI models which turned tech space on its head starting a massive rally in the country’s stock market. Apart from that, it appears Burry is looking to capitalize on the growing demand for healthcare services and advanced analytical technologies, while also focusing on consumer discretionary taking positions in apparel, cosmetics, and luxury goods industries.
Our Methodology
To make the list of Michael Burry’s top portfolio holdings we reviewed Scion Asset Management’s fourth-quarter 2024 portfolio and ranked the list according to the hedge fund’s stake value in each firm. If there was an overlap, we prioritized the holding that was worth more money. We have also assessed the number of shares acquired by Scion Asset and hedge fund sentiment toward each stock from Insider Monkey’s database of hedge investor letters.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373% since May 2014, beating its benchmark by 218 percentage points (see more details here).
That said, please see if there are overlaps between our compilation of famous investor’s top 10 stock picks heading into 2025 wrapped up in October and a new list of Michael Burry’s top 10 portfolio holdings.
A doctor in scrubs shaking hands with a patient, representing the healthcare services provided to individuals and families.
Molina Healthcare, Inc. (NYSE:MOH)
Portion of portfolio: 9.39%
Value of holdings: $7,276,250
Molina Healthcare, Inc. (NYSE:MOH), is a provider of affordable healthcare with a focus on low-income populations via Medicaid, Medicare and Marketplace programs as well as state insurance marketplaces.
Burry cut its holdings of Molina by 17% sequentially to 25,000 of its shares.
Molina’s fourth quarter results fell short of both the company’s and analysts’ projections, primarily due to greater-than-expected care usage among its members. Total operating expenses grew by 7.6% year over year to $8.7 billion. However, the company’s Healthcare premium revenues totaled $8.4 billion, up by 5.6% year over year. Net income totaled $255 million, up 6.3% over the same period. Total membership declined 5% year-over-year to roughly 5.5 million as of December 31, 2023.
Molina stock saw a post-earnings announcement drift on February 5. After the market close on March 11, the stock traded at $324.81 per share. Year-to-date the company’s stock has gained 11.6% in value. Molina has a market capitalization of $18.027 billion.
Molina Healthcare (NYSE:MOH), which remains one of Michael Burry’s top portfolio holdings continues its focus on a growth strategy including organic growth, winning new state contracts and acquisitions, with ConnectiCare purchase being the most recent, effective February 1, 2025. The management expects Molina to meet its target of $42 billion in premium revenues for 2025 and $46 billion in 2026. The company plans to issue $500 million in senior notes due in 2033, with the proceeds going toward general business operations.
Cantor Fitzgerald’s reiterated its Overweight rating on Molina stock with a price target of $356 suggesting confidence in the company’s market position as it navigates the complexities of state-level healthcare regulations, according to Investing.com.
Truist cut the firm’s price target to $340 from $370 on Molina stock while keeping a Buy rating, according to MarketScreener.
Overall, MOH ranks 5th on our list of Michael Burry’s top Holdings that were gaining while NVDA was crashing. While we acknowledge the potential of MOH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MOH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.