Though the most recent 13-f filed by ‘The Big Short’s’ Michael Burry and his Scion Asset Management revealed massive changes to the portfolio with the complete sale of 11 positions and opening of 5 new ones, the situation at the top remained nearly identical as it was in the first quarter of the year.
Indeed, the May 15 filing revealed that Burry’s two biggest holdings were the Chinese giants Alibaba (NYSE: BABA) and JD.com (NASDAQ: JD), with the former accounting for 8.7% of the portfolio and the latter for 9.5%.
Thanks to ‘The Big Short’ investor selling about a third of his JD position and buying an additional 30,000 BABA shares, Alibaba stock became the single largest holding, accounting for 21% of the portfolio as of June 30, 2024.
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Michael Burry’s biggest and most controversial trade
For over a year, Michael Burry has been consistently bolstering his Alibaba investment despite the trade being regarded – at least after the famous trader closed his 2023 short position against the semiconductor industry – as his most controversial bet.
The Chinese e-commerce and technology firm has first substantially declined since Burry made the investment in the summer of 2023 and has, subsequently, mostly traded sideways, with its bigger May 2024 rally proving indecisive.
Such performance means that Burry is in the red on his initial BABA stock investment and has likely lost approximately $200,000 on the original 50,000 shares.
On the other hand, Burry has been buying additional stock throughout the volatile period to hold, as of the last period reported, 155,000 shares, meaning he is likely in the green on the overall investment.
Still, without knowing the exact timing of the trades – a piece of information that is not disclosed in the filings – it is impossible to gauge just how much Burry has made or lost.
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