Last month, the investing world witnessed a seismic shift as legendary fund manager and investor Michael Burry revealed his new ‘big short’ position against the stock market.
Burry, who famously profited from shorting the US housing market in 2008, returned to the scene with a bold move, shorting US stocks through 40,000 put options with a nominal value of the contacts at $1.6 billion.
Amidst the buzz surrounding this high-profile trade, some of Burry’s other stock market moves have slipped under the radar, including his recent investment of $2.2 million in iHeartMedia (NASDAQ: IHRT). This unexpected bet on a seemingly unremarkable company has raised eyebrows and left many questioning his rationale.
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IHRT down 45% in 2023
Three weeks ago, Burry revealed a $2.2 million stake in iHeartMedia, a mass media corporation focused on radio broadcasting.
Burry’s move raised many eyebrows in the investing space, considering that IHRT is a stock that plummeted around 45% in 2023.
At the time of writing, the stock was trading at $3.32 per share, up slightly at the market open. Over the past week, IHRT fell more than 10% and over 7% on the month.
Moreover, IHRT operates within what is often characterized as a “dying industry.” This additional layer of complexity adds to the uncertainty surrounding Michael Burry’s investment in the company, prompting questions about his strategic reasoning.
How big is Burry’s position in IHRT stock?
According to a post shared by Michael Burry Stock Tracker, iHeartMedia is the largest operator of radio stations in the US. Notably, the company owns and manages more than 850 live broadcast stations across over 150 markets throughout the country, and has “a significant digital presence through its iHeartRadio platform.”
Despite its size, IHRT has seen its stock price collapse over the years, losing more than 80% of its value since the company’s public debut in 2019, when it was trading for $17 per share.
“The market is trading the equity-like it could go bankrupt a second time and potentially have to restructure.”
– Michael Burry Stock Market wrote in a tweet.
With many questioning Burry’s reasoning to invest $2.2 million in such a vulnerable stock, Michael Burry Stock Tracker sees it as a “small position.”
The iconic investor holds 200,000 shares of IHRT, according to the latest publicly available data, making up 0.13% of his entire portfolio.
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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.
