‘Big Short’ investor Michael Burry bet on Tesla stock to tumble and inflation to crush long-dated bonds. Here’s what he bought and sold last quarter.
Michael Burry
Michael Burry.

Bloomberg TV

  • Michael Burry wager on Tesla stock to tumble and inflation to hammer prolonged-dated bonds.
  • “The Good Brief” investor provided Wells Fargo and reinvested in CVS Properly being remaining quarter.
  • Burry’s Scion fund exited 15 out of 23 holdings, and added 18 fresh names to its portfolio.
  • Stumble on extra reviews on Insider’s trade page.

Michael Burry wager against Elon Musk’s Tesla remaining quarter, and backed up his warnings of upper inflation with a slew of bets against Treasury bonds, a portfolio update published this week. He also overhauled his holdings, swapping out the likes of Pfizer and Wells Fargo for Alphabet and Occidental Petroleum.

Burry is ultimate identified for his billion-greenback wager against the US housing bubble in the mid-2000s, which used to be chronicled in Michael Lewis’ e book “The Good Brief.” He also helped pave the skill for the GameStop immediate squeeze earlier this year by investing in the video-video games retailer and pressuring its bosses to abolish adjustments support in 2019.

The investor’s Scion Asset Administration company held bearish put choices on Tesla shares, the iShares 20+ twelve months Treasury Bond ETF, and the iShares Russell 2000 Bellow ETF at the end of March. These positions counsel Burry expected Tesla stock to tumble, inflation to erode the price of prolonged-dated bonds, and for cramped-cap firms to poke in designate.

Burry and his team made sweeping adjustments to their stock portfolio remaining quarter, exiting 15 out of 23 positions and at the side of 18 fresh names to their holdings. They provided their stakes in Allstate, Ares Capital, Model designer Brands, Discovery, Geo Neighborhood, Hollyfrontier, Kimball Global, Molson Coors, MSG Network, Qurate Retail, Uniti, Wells Fargo, and Western Digital. Moreover, they exited their calls against Citigroup and Pfizer stock.

On the many hand, Scion sold shares in Aerpio Phamaceuticals, CVS Properly being, Genco Transport & Trading, Golden Ocean, Helmerich & Payne, Marinus Prescribed capsules, Meredith, Occidental Petroleum, Precision Drilling, ProShares UltraShort 20+ twelve months Treasury, Scorpio Tankers, Vector Acquisition, and Zymeworks.

Burry’s company also bought bullish call choices on Alphabet, CVS Properly being, facebook, Netapp, Direxion Each day 20+ twelve months Treasury Undergo 3X Shares, ProShares UltraShort 20+ twelve months Treasury, and ProShares UltraPro Brief 20+ twelve months Treasury. These bets on index funds underscore Burry’s inflation fears and unfavorable outlook for prolonged-dated Treasury bonds.

It be price noting that Scion reestablished positions in Alphabet, CVS Properly being, facebook, and Precision Drilling remaining quarter. All four names had been in its portfolio in the third quarter of 2020, but it exited them in the fourth quarter.

Most inspiring eight of Scion’s holdings survived the principle quarter. These had been its suppose stakes in Corecivic, Ingles Markets, Lumen Applied sciences, Now Inc, RPT Realty, Suncoke Vitality, and Urstadt Biddle, and its call choices against Kraft Heinz stock.

With the exception of choices bets, Burry’s largest holdings as of March 31 had been a $10 million stake in Corecivic, roughly $9 million positions in Ingles Markets, Lumen Applied sciences, and Zymeworks, and $8 million of CVS Properly being stock.

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