Michael Burry of ‘The Big Short’ fame earned the admiration of investors all over the world by correctly predicting and profiting off of the 2008 subprime mortgage crisis.
Since then, he has remained active through his hedge fund, Scion Asset Management. Over the course of 2024, Burry’s stock portfolio netted an impressive 74.24% return, far outpacing the S&P 500.
Although most of his investments as of late have been focused on Chinese big-tech companies, every once in a while, he invests in something on the domestic front. On February 14, the current incarnation of Michael Burry’s stock portfolio was revealed through a 13F filing — and one U.S. stock within it has recently seen a sharp move to the upside.
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Oscar Health, Inc. is a relatively low-profile mid-cap business that operates a direct-to-consumer digital platform for health insurance. While Oscar Health stock (NYSE: OSCR) has struggled since its initial public offering (IPO) back in early 2021, the company finally became profitable in the first quarter of 2024.
More importantly, OSCR stock closed on Tuesday, February 18, at a price of $15.85, up from the previous trading day’s close of $13.46. This initial 17.75% rally was extended in the premarket trading session. By press time on February 19, Oscar Health stock was changing hands at $16.67 — bringing the surge to 23.84%, and year-to-date (YTD) returns up to 24.03%.
Investors pile in on Michael Burry stock at bargain prices
The primary reason behind the surge is quite simple — investors went bargain-shopping, as OSCR stock reached a 12-month low of $13.06 on February 13.
On February 4, the business released its Q4 and full-year 2024 earnings call. It was a double miss — both revenues and earnings per share (EPS) came in below analyst expectations. Last quarter, Oscar Health posted an earnings miss.
As a result, the company was trading at quite an attractive valuation following the dip. Even now, after this latest surge, the forward price to earnings (PE) ratio of Oscar Health stock sits at 24.03.
Despite recent challenges, 2024 marked the company’s first profitable year. Per the latest 13F filing, Burry holds 200,000 OSCR shares, which constitute roughly 3.5% of this portfolio.
Depending on when exactly in Q4 the shares were acquired, their initial price could have been anything from $13.38 at the low point to $20.25 at the higher end. Accordingly, Michael Burry could be as much as 24.58% in the green or 17.67% in the red on one of his latest stock bets.
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