Last Updated on November 24, 2021
Famous “Big Short” Investor, Michael Burry, on Monday, November 15, 2021 revealed in a recent regulatory filing his newest holdings. In Michael Burry’s portfolio 2021 analysis, we will go into more detail about what positions Burry has in his fund’s portfolio and how this has changed compared to the previous positions held.
Keynotes – Burry’s Portfolio Positions Q3 2021
- Michael Burry sold most of his Q2 holdings during Q3 2021.
- He added three new holdings: Lockheed, Scynexis and Now.
- CVS Health isn’t reduced, while he reduced Geo Group and Corecivic.
- Consumer staples make more than 40% of Burry’s portfolio.
Burry’s Scion Asset Management bought new shares in aerospace and defense giant Lockheed Martin, oil-drilling equipment specialist Now, and a biotech company Scynexis. He also reduced Geo Group holding by 54% and CoreCivic bet by 68%. Only position that was left intact was a stake in CVS Health. Below, you will find more about each company that Michael Burry holds in his portfolio as of September 30, 2021.
We all know that Burry believes inflation will soon increase. We can conclude this from his public statements, as well as on his Tweets.
Although it seems like Michael Burry sold a lot now from what he kept in his last 13F filing, his strategy is simply to buy and sell many stocks each quarter.
Here are the current holdings of Michael Burry’s portfolio in 2021.
- Stocks: 6
- Period: Q3 2021
- Date: 30 September 2021
- Portfolio Value $ 41,719,000
Michel Burry portfolio 2021
|Stock||Value||% of total|
|Shares||Price per share*||Last activity|
|CVS Health Corporation (CVS)||16,972,000||41%||200,000||84.86||same|
|Lockheed Martin Corporation (LMT)||10,353,000||25%||30,000||345.10||new holding|
|The GEO Group, Inc. (GEO)||8,656,000||21%||1,158,820||7.47||sold 54% shares|
|CoreCivic, Inc. (CXW)||3,668,000||9%||412,126||8.90||sold 68% shares|
|NOW Inc. (DNOW)||1,148,000||3%||150,000||7.65||new holding|
|SCYNEXIS INC||922000||2%||174,030||5.30||new holding|
Scion Asset Management in 13F filing has to disclose only stocks in the United States. Given that he has been advocating for some time that stocks are overvalued here, my guess is that his current market is too expensive to buy here (other than stocks he apparently bought), and to wait for a market correction, or invest in foreign markets. In the following picture one can find Scion Asset Management investments globally. Although it is a beta database, we can see how the Japan 5% Filing portfolio update came recently and that Burry also has some stocks there.
Burry stopped betting against Cathie Wood’s ARK and Tesla
In Michael Burry’s portfolio Q2 2021, the first thing to catch an eye was that Scion Asset Management bought 2,355 bearish (put) contracts against the ARK Innovation ETF (ARKK) during the second quarter and held them through the end of the period. However, he decided to sell that option and is currently no longer holding it.
Moreover, Burry’s biggest put option on Tesla in Q2 2021 is gone. As of June 30, Burry owned 1,075,500 put contracts, valued at 731,017,000. With unknown strike price or expiry. Tesla had a phenomenal year in 2020, but in 2021, there was some instability of the stock. But recent quarterly reports have exceeded even high public expectations. As a result, the price of Tesla has risen further. As far as we know, Burry sold his option sometime before the quarterly results came out so he wasn’t hit hard by the news. Anyway, I don’t think this was his best decision, but he could have gone a lot worse. Burry certainly still sticks to his idea that Tesla is overvalued, but he noted that the public is very excited about this stock and that the price will not fall for some time to come. It is very difficult to predict audience hype. Read more about Tesla valuation on previous Michael Burry Analysis.
More speculation than the 1920s. More overvaluation than the 1990s. More geopolitical and economic strife than the 1970s.Michael Burry
Sold Stake in Facebook
Moving on to the next big bet that Michael Burry has in his Q2 portfolio 2021. As you probably know, dr. Burry’s fund has increased its stake in Facebook, Inc. (FB) by 71% over the Q2 period, and owned 941,000 shares in the company worth over $327 million. In Q3 2021 he sold all shares. The price of Facebook did drop in the last weeks of Q3 2021. How much did Burry make on this investment? Not sure but he did some, not much.
Scion Bet Against Inflation and the System
In Q2 2021 Scion Asset Management owned 1,943,000 put options in iShares 20+ Year Treasury Bond ETF (TLT) that were worth over $280 million. The bearish options would make money if Treasury yields went up and consequently, the TLT exchange-traded fund falls in price.
Burry was confident that the economic reopening and economic stimulus in months during pandemics would accelerate inflation, consequently making FED raise interest rates. But, Michael Burry decided to give up this bet. The reason may be that he simply does not trust the government to raise interest rates given the data that government uses to show inflation. Recently, he called out FED’s inflation rates and asked them how they were deceiving the public.
People always ask me what is going on in the markets. It is simple. Greates Speculative Bubble of all time in all things. By two orders of magnitude.Michael Burry (Twitter, Jun 15, 2021)
Burry’s New Portfolio Holdings in 2021
Consumer staples now make 40% of Michael Burry’s United States portfolio. These stocks tend to do good in inflationary times. All stocks that currently make up his 13F portfolio have a total value of $41,719,000. Not much assuming his previous bets. As I said before, I guess the American market is currently too expensive for Burry and he is waiting for better opportunities. Apparently, he found some of them in foreign markets, such as Japan and the United Kingdom (see a portfolio from the picture above).