In line with expectations, Michael Burry‘s Scion Asset Management experienced a notable setback last month, as revealed by the Q3 13-F securities filings.
Departing from its previously bearish stance on the S&P 500 and Nasdaq-100, the firm incurred a substantial loss. The filings also unveiled Burry’s new strategic move – a $47.4 million investment in put options against the iShares Semiconductor ETF (SOXX). Unfortunately for the renowned investor, this bet has faced challenges, as semiconductor stocks within the ETF have surged amidst a broader AI-driven market rally.
Additionally, another Q3 investment made by Burry saw a decline of approximately 18%, contributing to a less-than-stellar quarter for the legendary investor.
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Burry’s bet on Alibaba not bearing fruit
The 13-F filings for the third quarter revealed several new moves by Burry’s Scion Asset Management, including completely new positions, divestitures, as well as expansion in existing investments.
One of these bets that catches the eye is the investor’s fresh position in Chinese e-commerce giant Alibaba (NYSE: BABA), according to Dataroma.
Notably, Burry purchased 50,000 BABA shares in Q3 for a total of approximately $4.3 million. However, this move hasn’t played out as planned, at least for now, with Alibaba’s shares experiencing a significant decline in recent months.
Scion bought the stock at a reported price of $86.74. At the time of writing on December 11, BABA was sitting at below $71, translating to a loss of 18.20% for the asset management firm. Scion’s position in Alibaba accounts for 9.88% of its portfolio.
Other notable Q3 moves
JD.com (NASDAQ: JD), also a major Chinese e-commerce company, was also among Burry’s loss-making positions in Q3. Representing 8.29% of his portfolio, this investment is currently sitting on an unrealized loss of 12.53% for Scion.
On a positive note, several new investments made in Q3 are currently in the money, including increases in the existing bets like Stellantis (NYSE: STLA) and Safe Bulkers (NYSE: SB). These two investments rose 18.2% and 15.1% from Scion’s reported buy prices.
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