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Michael Burry’s Fund Exits All Long Stocks Except One

Story Highlights

Michael Burry’s Scion Management sold all its long-term stock investments in the second quarter. His stance resonates with his bearish view of the U.S. economy.

Michael Burry of “The Big Short” fame, and the hedge fund manager of Scion Asset Management published a 13F filing yesterday. The regulatory filing discloses all of Scion’s long-term equity stock bets but does not require disclosure of any short-term bets.

As per the filing, as of June 30, Scion has exited all its long stock holdings from the first quarter and retained only one stock in the second quarter. Notably, the only company still held in its portfolio is private prison operator Geo Group Corp. (NYSE: GEO.) Following the news, GEO stock gained 10.6% yesterday and is up over 7% in pre-market trading today. Scion holds 501,360 shares of Geo Corp. worth about $3.81 million as of date.

As of March 31, Scion had approximately $200 million worth of stocks in its portfolio. Remarkably, Scion liquidated all its other equity positions, including technology giants Alphabet Inc. (GOOGL) and Meta Platforms (META).

Burry also actively posts his views about the economy on the microblogging site Twitter (TWTR) and has tons of followers. Since May 2022, Burry has been predicting that the U.S. economy will enter an ugly recession. His remarks about “COVID-era Silliness” continuing in the market and growing consumer credit have jolted the masses.

Burry rose to fame after the movie “The Big Short” showcased how he made billions of dollars by shorting the housing bubble of 2008. He also forecasted the crash of cryptocurrencies and meme stocks as early as last year.  

Is Geo Stock a Good Buy?

On TipRanks, GEO stock has a Moderate Buy consensus rating based on one Buy. The average Geo Group price target of $15 implies a whopping 97.4% upside potential to current levels. Meanwhile, the stock has lost 3.2% so far this year.

On the other hand, TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Geo Group is currently Neutral, as four hedge funds decreased their cumulative holdings of GEO stock by 298,900 shares in the last quarter.

Ending Thoughts

Michael Burry’s premonitions are widely followed by the masses. Liquidating all his long-term holdings of big tech stocks implies that Burry is highly pessimistic about the economy. There is a reason that TipRanks doesn’t have a dedicated page for Michael Burry. It’s because he sells all his stocks every quarter, acting more like a day trader than a traditional hedge fund owner. Therefore, we find his trades less valuable to our users, so we don’t follow his trades on a TipRanks page.

Disclosure

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