Michael Burrythe legendary investor who predicted the 2008 financial crisis, has once again made headlines with his latest 13F filing for his hedge fund. Scion Asset Management LLC.
The first quarter of 2024 reveals a strategic recalibration towards physical commodities and renewable energy, as Burry moves away from some tech giants.
The total market value of Scion’s 13F securities increased from $94.6 million to $103.49 million. Fund activity included five new purchases, additions to 11 existing positions and total sales of 14 stocks.
Top 5 buys: a golden bet on gold and clean energy
Burry’s top purchases for the first quarter of 2024 reveal a clear pivot toward physical precious metals and clean energy, underscoring its anticipation of rising value in these sectors.
At the head of the charge is Sprott Physical Gold Trust ETV (NYSE:PHYSICS), Scion increasing its position by $7.62 million, marking a 7.37% change in the portfolio. This substantial investment highlights Burry’s confidence in gold as a hedge against economic uncertainty. The aforementioned gold fund has returned 16% year-to-date, outperforming the broader stock market, as tracked by SPDR S&P 500 ETF Trust (NYSE:TO SPY), up 12%.
Next in line is Cigna Holding Co. (NYSE:CL), in which Scion increased its stake by $7.26 million, representing a portfolio change of 7.02%. The move reflects Burry’s continued confidence in the resilience and growth potential of the healthcare sector.
Reflecting confidence in the energy sector, Burry added $6.59 million in BP Plc ADR (NYSE:P.A.), resulting in a portfolio variation of 6.37%. This investment demonstrates Burry’s recognition of BP’s strong position in the global energy market, particularly in the context of BP’s transition to cleaner energy sources.
Last week, the British energy company’s electric vehicle charging unit announced plans to acquire Tesla Inc. (NASDAQ:TSLA) supercharger sites in the United States as part of its expansion efforts.
Burry’s commitment to renewable energy further highlighted by $5.06 million increase First Solar Inc. (NYSE:FSLR), representing an increase in the portfolio of 4.89%. The move aligns with the global transition to sustainable energy solutions, demonstrating Burry’s foresight in capitalizing on this growing trend.
To complete the five best buys, here are Baidu Inc ADR (NASDAQ:BEGINNING), with an addition of $4.38 million, marking a portfolio change of 4.07%. This investment underlines Burry’s confidence in the long-term potential of Chinese technology companies.
In its fourth quarter 2023 13F filing, Burry increased its stake in two major Chinese retail giants, JD.com Inc. (NASDAQ:J.D.) And Alibaba Group Holdings (NASDAQ:BABA).
At the end of the first quarter of 2024, Burry further increased its stakes in these two giants, purchasing an additional 160,000 shares of JD.com and 50,000 shares of Alibaba.
Top 5 Portfolio Divestments: Burry Trims Tech Giants
Burry made notable divestments in several leading technology stocks during the first quarter.
Oracle Corp. (NASDAQ:ORCL) tops the list, with Scion reducing its holdings by $5.77 million, a 5.57% change in the portfolio.
CVS Health Corp (CVS) followed closely, with a reduction of $5.62 million, a change of 5.43% in the portfolio. The move could reflect concerns about potential challenges in the healthcare sector.
Nextstar Media Group (NASDAQ:NXST) ranked third in terms of highest sales, with Burry reducing its stake by $5.57 million (5.39% change).
Burry notably chose to completely shed his positions in two major US tech giants, suggesting a reassessment of their growth prospects after a strong recovery.
Alphabet Inc. (NASDAQ:GOOGLE) saw a complete divestment, with Burry selling $5.35 million worth of shares (a change of 5.17%).
In the same way, Amazon.com Inc. (AMZN) saw a complete exit, with a reduction of $4.99 million, representing a portfolio change of 4.82%. The move highlights Burry’s cautious stance on the future performance of one of the world’s largest e-commerce platforms.
Portfolio Summary
The top five holdings by weight in Scion Asset Management LLC’s portfolio at the end of the first quarter of 2024 are:
JD.com Inc.: 9.53%.
Alibaba Group Holding Ltd: 8.74%.
HCA Health Inc. (NYSE:HCA): 8.06%.
Citigroup Inc. (NYSE:VS): 7.64%.
Sprott Physical Gold Trust: 7.37%.
Image created using artificial intelligence via Midjourney.
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This item ‘Big Short’ Investor Michael Burry Bets Heavily on Gold and Renewable Energy Stocks, Exits Amazon and Alphabet originally appeared on Benzinga.com
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