The famous ‘Big Short’ investor Michael Burry has recently had some tough luck with his bet against the semiconductor sector, with his bet down as much as $5 million since it was made. The chip sector is currently experiencing a surge, as Nvidia (NASDAQ: NVDA) posts new all-time highs almost daily, and other industry players aren’t far behind,
However, there remain positions in the Scion Asset Management hedge fund that Burry leads, and although they might be lesser known, their recent performance is noteworthy.
Thus, Finbold has looked in-depth at the hedge fund’s portfolio to identify its most successful stock holding based on data retrieved on February 2 to see what potential returns it can bring to investors in the coming years.
Picked for you
An unexpected performer
Significantly, the largest position is Stellantis NV (NYSE: STLA), a multinational automotive manufacturing corporation resulting from the merger between the Italian–American conglomerate Fiat Chrysler Automobiles and the French PSA Group.
STLA continues to post positive gains, which might be small for some investors, but its main attribute is consistency.
In the last six months, this stock’s price increased by 16.12%, while the recent performances spell out consistent gains of 4.01% since the previous closure and 7.69% over the past five trading sessions.
Looking at the recent performance, STLA is among the top-performing stocks, outperforming 88% of the market and demonstrating a consistent rising price pattern. As part of the automobile industry, it surpasses 92% of its counterparts.
Although trading near the upper limit of its 52-week range, STLA slightly lags behind the S&P500, which is trading at a new high. In the last month, STLA has fluctuated between 20.88 and 23.00, currently nearing the higher end. With an average daily trading volume of 4,943,840 shares, STLA maintains good liquidity.
Recent acquisitions of STLA stock
The latest acquisition of this stock happened in Q3 2023, with an increase of 23.1% in total holdings at an average buy price of $17.14, currently $22.84. This comes as an increase of 33.25% since the acquisition.
Additionally, STLA pays dividends, with the payout seeing a 19.81% increase over five years, which further increases the appeal of this stock, as investing in dividend stocks allows you to share in a company’s success. Still, it’s vital to remember that dividends are not guaranteed and should be seen as a potential bonus rather than an expected regular payment.
Stellantis holds a prominent position in the portfolio, with 400,000 shares of STLA valued at over $8 million, constituting the largest share at 18.6%. The investment powerhouse initially entered the Stellantis market in Q1 2022, acquiring 600,000 shares. However, all these shares were subsequently sold in Q2 of the same year.
A year after, in Q2 of 2023, this position was reopened with a purchase of 325,000 shares and boosted by an additional 75,000 immediately after.
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