Few figures in the investment realm have captured attention quite like Michael Burry.
Widely recognized for his prescient prediction of the 2008 housing market crash, Burry’s stature in the financial world remains unparalleled. Every move he makes draws a global audience, with his recent pivot raising eyebrows: a substantial bearish stance on the US semiconductor sector, following the closure of his bet against the broader market.
In this context, on December 25, Finbold delves into the performance of Burry’s extensive stock portfolio, unveiling the standout winners and the underperforming entities in his latest investment saga.
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Burry’s 2023 gainers
It is no secret that since his market crash prediction 15 years ago, many of Burry’s subsequent forecasts either didn’t come to fruition or, in some cases, took a turn for the worse. Yet, at the same time, his capability to identify winners and make timely trades is very much present.
When looking at his 2023 moves and performance of specific stocks, one of the names that stands out is Hudson Pacific Properties (NYSE: HPP), a real estate investment trust with a market cap of more than $1.2 billion.
Burry’s Scion Asset Management first invested in HPP in Q2 2023, buying 250,000 shares. A few months later, Q3 securities filings revealed that the legendary investor boosted this position by an additional 60%.
According to HedgeFollow, the value of this investment soared more than 61% from the average buy price, turning HPP into one of Burry’s best-performing stocks this year.
Other stocks that delivered a strong display in 2023 include the luxury goods marketplace The RealReal (NASDAQ: REAL), diamond jewelry retailer Signet Jewelers Limited (NYSE: SIG), and electric vehicle (EV) maker Stellantis (NYSE: STLA), among others.
STLA, Scion’s largest individual stock holding (17.4% of the firm’s portfolio), soared around 30% from the average buy price, while REAL and SIG gained more than 44% and 42%, respectively.
Worst performers
Without a doubt, one of the poorest stock market moves Burry and Scion made in 2023 is their bearish bet against SPY and QQQ equity exchange-traded funds (ETFs) revealed in Q2. According to analysts’ calculations, the investment giant closed its position against those funds at an approximate 40% loss.
Shortly after exiting this bet, Burry redirected his bearish sentiment toward a specific sector: semiconductors. Notably, Scion bought put options tied to the iShares PHLX Semiconductor ETF (SOXX), one of the biggest semiconductor ETFs.
The average buy price of these options was $490.46, according to HedgeFollow. Compared to that price, SOXX’s value surged more than 16%. However, this development is not favorable for Burry and Scion, as acquiring put options essentially involves wagering on the potential profitability of a decline in the underlying asset’s price.
When it comes to individual holdings, the worst-performing stocks bought and held by Scion include Chinese internet giants JD.com (NASDAQ: JD) and Alibaba (NYSE: ALIBABA). As per the latest data retrieved, the value of these investments fell 12.8% and 11.5% from Scion’s average buy prices.
Nexstar Media Group (NASDAQ: NXST) also delivered a negative performance, although it is down just 1.6% from the average buy price.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
