Michael Burry, also known as “The Big Short” investor, sold virtually all but one of his US stocks last quarter.
Burrys Scion Asset Management now owns just a $3.3 million stake in prison operator Geo Group, according to hedge fund filings.
For comparison, Scion still owned $165 million worth of stock at the end of March.
Even if Wall Street seems to be slowly recovering, one remains skeptical. Star investor Michael Burry has sold all but one of his shares. This is according to documents from Burry’s hedge fund Scion Asset Management, which were published on Monday.
The only stock Burrys Scion Asset Management still owned at the time of writing was 500,000 shares of Geo Group worth $3.3 million. Geo invests in private prisons and mental health facilities and has a market cap of just under $900 million. For comparison, Scion’s portfolio at the end of March still contained eleven stocks worth $165 million.
Burry supporters may take his decision to effectively liquidate his portfolio as a bad omen. The hedge fund manager predicted the “biggest asset bubble of all time” last summer, saying owners of meme stocks and cryptocurrencies were headed for the “mother of all crashes.” More recently, he advised investors not to get too excited about the current stock rally. Lessons learned from past recessions: Previous downturns have produced many temporary recoveries before bottoming out. He also said the “naivety” that reigned in markets during the pandemic peak was back, tweeting over the weekend that it reminded him of the euphoric times that preceded the dot-com crash.
The Scion boss is known for not dithering in difficult times. In the third quarter of last year, he reduced his portfolio from 20 to six stocks and reduced the value from 140 to 42 million dollars within three months.
Burry rose to fame after his multi-billion dollar bet against the housing bubble was released as the book and film The Big Short in the mid-2000s. He made headlines last year after betting against Elon Musk’s Tesla and Cathie Wood’s Ark Innovation Fund. He invested in GameStop before the stock became a meme – the star investor always seems to be a few steps ahead.
This article was translated from English by Lara Hansen. You can find the original here.