IMPORTANT POINTS:
- Michael Burry, renowned for predicting the 2008 housing crisis, remains a prominent figure in the financial world.
- In 2023, its portfolio included winners such as Hudson Pacific Properties, The RealReal and Stellantis.
- The worst performances came from his bearish bet on ETFs and stocks like JD.com and Alibaba.
Few figures in the investment space have captured the attention like Michael Burry.
Recognized worldwide for his accurate prediction of the 2008 housing crisis, Burry’s stature in the financial world remains unmatched. Every move he makes attracts a global audience, and his recent turnaround has caused a stir: a substantially bearish stance on the U.S. semiconductor sector, after closing his bet against the broader market.
Against this backdrop, on December 25, Finbold delves into the performance of Burry’s extensive stock portfolio, revealing the most successful and underperforming entities in his latest investment saga.
Burry winners in 2023
It’s no secret that since his market crash prediction 15 years ago, many of Burry’s subsequent forecasts have failed to materialize or, in some cases, gotten worse. However, at the same time, his ability to identify winners and make timely trades is still very much present.
When looking at its movements in 2023 and the performance of specific stocks, one of the names that stands out is Hudson Pacific Properties (HPP), a real estate investment trust with a market capital of more than $1.2 billion.
Burry’s Scion Asset Management first invested in HPP in the second quarter of 2023, purchasing 250,000 shares. A few months later, third-quarter securities filings revealed that the legendary investor increased this position by an additional 60%.
According to HedgeFollow, the value of this investment skyrocketed more than 61% from the average purchase price, making HPP one of Burry’s best-performing stocks this year.
Other stocks showing strong performance in 2023 include luxury goods marketplace The RealReal (REAL), diamond jewelry retailer Signet Jewelers Limited (SIG), and electric vehicle (EV) maker Stellantis (STLA), among others .
STLA, the largest single holding of Scion stock (17.4% of the firm’s portfolio), rose about 30% from the median purchase price, while REAL and SIG gained more than 44% and 42%, respectively. .
Worst performances
Without a doubt, one of the worst stock market moves Burry and Scion made in 2023 is their bearish bet against the SPY and QQQ exchange-traded funds (ETFs) revealed in the second quarter. According to analyst calculations, the investment giant closed its position against these funds with an approximate loss of 40%.
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 largest semiconductor ETFs.
The average purchase price of these options was $490.46, according to HedgeFollow. Compared to that price, SOXX’s value increased by more than 16% . However, this development is not favorable for Burry and Scion, since purchasing puts involves betting on the potential profitability of a decrease in the price of the underlying asset.
As for individual holdings, the worst-performing stocks bought and held by Scion include Chinese internet giants JD.com (JD) and Alibaba (BABA). According to the latest data obtained, the value of these investments fell 12.8% and 11.5% from Scion’s average purchase prices.
Nexstar Media Group (NXST) also had a negative performance, although it was only down 1.6% from the average purchase price.
