Michael Burry, the legendary investor who famously 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, while Burry shifted away from some tech giants.
The total market value of Scion’s 13F securities increased from $94.6 million to $103.49 million. The fund’s activity included five new purchases, additions to 11 existing positions, and complete sell-offs of 14 stocks.
Top 5 Buys: A Golden Bet On Gold And Clean Energy
Burry’s top buys for Q1 2024 reveal a clear pivot towards physical precious metals and clean energy, underscoring his anticipation of rising value in these sectors.
Leading the charge is the Sprott Physical Gold Trust ETV (NYSE:PHYS), with 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 delivered a 16% return year to date, outperforming the broader stock market, as tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY), which rose by 12%.
Next in line is Cigna Holding Co (NYSE:CL), where Scion increased its stake by $7.26 million, representing a 7.02% portfolio change. This move reflects Burry’s continued belief in the resilience and growth potential of the healthcare sector.
Reflecting confidence in the energy sector, Burry added $6.59 million worth of BP Plc ADR (NYSE:BP), translating to a 6.37% portfolio change. This investment signifies Burry’s recognition of BP’s strong position in the global energy market, especially amid 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) supercharging sites in the US as part of its expansion efforts.
Burry’s commitment to renewable energy is further emphasized by a $5.06 million increase in First Solar Inc. (NYSE:FSLR), representing a 4.89% change in the portfolio. This move aligns with the global shift towards sustainable energy solutions, showcasing Burry’s foresight in capitalizing on this growing trend.
Rounding out the top five buys is Baidu Inc ADR (NASDAQ:BIDU), with a $4.38 million addition, marking a 4.07% portfolio change. This investment underscores Burry’s confidence in the long-term potential of Chinese technology companies.
In his Q4 2023 13F filing, Burry increased stakes in two major Chinese retail giants, JD.com Inc (NASDAQ:JD) and Alibaba Group Holdings (NASDAQ:BABA).
At the end of the first quarter 2024, Burry further increased his 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 high-profile tech stocks during the first quart.
Oracle Corp (NASDAQ:ORCL) tops the list, with Scion decreasing its holdings by $5.77 million, a 5.57% change in the portfolio.
CVS Health Corp (CVS) followed closely, with a $5.62 million reduction, a 5.43% change in the portfolio. This move might reflect concerns over potential challenges in the healthcare sector.
Nexstar Media Group (NASDAQ:NXST) ranked third in terms of largest sales, with Burry reducing the stake by $5.57 million (5.39% change).
Notably, Burry opted to completely exit his positions in two major U.S. tech giants, suggesting a reevaluation of their growth prospects following a strong rally.
Alphabet Inc. (NASDAQ:GOOGL) saw a full divestment, with Burry selling $5.35 million worth of shares (a 5.17% change).
Similarly, Amazon.com Inc. (AMZN) experienced a complete exit, with a $4.99 million reduction, representing a 4.82% portfolio change. This 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 the Scion Asset Management LLC’s portfolio by the end of the Q1 2024 are:
- JD.com Inc: 9.53%.
- Alibaba Group Holding Ltd: by 8.74%.
- HCA Healthcare Inc (NYSE:HCA): 8.06%.
- Citigroup Inc (NYSE:C): 7.64%.
- Sprott Physical Gold Trust: 7.37%.
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Image created using artificial intelligence via Midjourney.
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