Michael Burry is a well-known hedge fund manager and founder of Scion Asset Management. He is famous for his uncanny ability to spot trends before others and capitalize on them. His most famous bet was against the subprime mortgage market, which helped him to make tens of millions for his investors during the Global Financial Crisis. In this article, we’ll take a look at some of his recent portfolio additions as we head into an uncertain 2023.
Alibaba Group Holding: A Bet on China’s E-Commerce Growth
Burry’s recent addition to his portfolio is Alibaba Group Holding, the Chinese e-commerce giant. With a market cap of over $500 billion, Alibaba is one of the largest companies in the world. Burry’s bet on Alibaba is a bet on the continued growth of China’s e-commerce market. With over 900 million active users, Alibaba’s platforms, including Tmall and Taobao, dominate China’s online shopping scene. Burry’s bet on Alibaba is also a bet on the Chinese consumer, as the country’s middle class continues to grow.
JD.com: A Competitor to Alibaba in China’s E-Commerce Market
Another addition to Burry’s portfolio is JD.com, China’s second-largest e-commerce company. JD.com operates a business-to-consumer platform, which competes directly with Alibaba’s Tmall. The company has been growing rapidly in recent years, and its market cap currently stands at over $140 billion. Burry’s bet on JD.com is a bet on the continued growth of China’s e-commerce market, as well as the company’s ability to compete with Alibaba.
Black Knight: A Bet on the US Housing Market
Black Knight is a leading provider of technology, data, and analytics solutions to the mortgage and real estate industries. Burry’s bet on Black Knight is a bet on the US housing market, which has been booming in recent years. With interest rates at historic lows, many Americans are taking advantage of low mortgage rates to buy homes. Black Knight’s technology solutions help banks and other lenders to manage their mortgage portfolios, making it a key player in the US housing market.
Burry has done it again
On 3/17 he tweeted this chart identifying New York Community Bank as a possible “favorable” bank
— Michael Burry Stock Tracker ♟ (@burrytracker) March 31, 2023
Coherent: A Bet on Advanced Laser Technologies
Coherent is a leading provider of laser-based technologies and solutions. The company’s products are used in a variety of industries, including scientific research, manufacturing, and healthcare. Burry’s bet on Coherent is a bet on the continued growth of advanced laser technologies, as well as the company’s ability to innovate and stay ahead of the competition.
MGM Resorts: A Bet on the US Gaming Industry
MGM Resorts is one of the largest gaming companies in the US, with properties in Las Vegas, Atlantic City, and other locations. Burry’s bet on MGM Resorts is a bet on the continued growth of the US gaming industry, which has been expanding rapidly in recent years. With the legalization of sports betting in many states, the US gaming industry is poised for further growth in the coming years.
Wolverine World Wide: A Bet on Footwear and Apparel
Wolverine World Wide is a leading designer, manufacturer, and marketer of footwear and apparel. The company’s brands include Merrell, Sperry, and Hush Puppies. Burry’s bet on Wolverine World Wide is a bet on the continued growth of the footwear and apparel industry, as well as the company’s ability to innovate and stay ahead of the competition.
SkyWest: A Bet on Regional Airlines
SkyWest is a leading regional airline in the US, operating flights on behalf of major carriers such as Delta, United, and American. Burry’s bet on SkyWest is a bet on the continued growth of regional airlines, which provide an essential service to smaller communities.