The latest filing detailing the stock holdings of the famous investor who predicted the 2008 crash – Michael Burry of “The Big Short” fame – published in mid-February covering the final trimester of 2023 was filled with interesting updates and revelations.
While his larger investments like HCA Healthcare (NYSE: HCA) and his more controversial bets like the one on Alibaba (NASDAQ: BABA) and the one against the semiconductor industry took the bulk of the attention, some smaller, less prominent trades have also apparently paid off big.
The most recent major example of this comes in the form of GEN Restaurant Group Inc (NASDAQ: GENK), an American chain of all-you-can-eat Korean barbeque restaurants whose stock surged 47.47% in the last five trading days.
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GENK stock price chart
The first thing to note is that, despite the most recent highly positive trend, GENK shares have been mostly losing ground in the stock market.
The last 52 weeks saw the restaurant stock decline 41.07% and year-to-date (YTD), GEN Restaurant Group wouldn’t have fared much better were it not for the recent surge.
The major driver behind the ongoing rally for GENK stock is the company’s earnings report covering the fourth quarter of 2023 which, while relatively mixed with underperforming earnings-per-share (EPS), showed strong results in areas like revenue.
The report, published on March 6, nearly single-handedly ended GENK’s crash. Since its release, GEN Restaurant Group is up 52.96% which translates – despite the late February collapse – into a 15.75% growth YTD.
More recently, GENK has demonstrated it has acquired significant stock market momentum and the shares are up 7.36% in the last 30 days, but have surged 47.47% in the last 5 days, and 11.33% in the last 24 hours.
The restaurant chain stock’s press time price stands at $9.04.
How much did Michael Burry make on GENK stock?
At first glance, the GENK bet proves that even barring a stock market crash, Michael Burry is more than able to make it big with his investments. The story is, however, somewhat more complicated as whether Burry made or lost money on the trade is highly dependent on when exactly he acquired the shares.
Throughout the final trimester of 2023, GENK’s price remained in the range between $10.50 and $6.70 and the stock fell below the press time price of $9.04 only in mid-November. This means that “The Big Short” investor is slightly down or level on the bet – even with the most recent rally – if he bought at any point in October.
However, if the assumption is made that Michael Burry correctly identified GENK stock’s bottom in 2023 and acquired his 154,142 shares at the price of approximately $6.70, the investment would now be worth just under $1.4 million – meaning that Burry would be a little over $350,000 in the green on GEN restaurant group.
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