15 Michael Burry Stocks Other Hedge Funds Like Most
In this article, we will present 15 Michael Burry stocks other hedge funds like the most. If you want to explore similar stocks, you can also take a look at 5 Michael Burry Stocks Other Hedge Funds Like Most.
A market crash before yearend is the latest prediction by famed investor Michael Burry. The legendary investor who accurately predicted the 2007 financial crisis is sounding the alarm bells that the US stock market will crash and has started using 90% of his portfolio to bet on the market downturn using options. Obviously we don't know the exercise price of these options, but it is very likely that these positions appreciated as the S&P 500 declined in recent weeks.
Burry has never shied away from controversy, having made bold bets and predictions in the past, some of which have turned out to be true. The Scion Asset Management founder made $100 million for himself and $725 million for his investors when he shorts the housing market ahead of the market crash in 2007.
With a net worth of about $1.2 billion, he makes a fortune by taking short positions in assets and counters he believes are overvalued amid deteriorating fundamentals and macroeconomics. The value investor and stark proponent of fundamental analysis are best known for his research acumen, which allowed him to make bold bets in the past. Likewise, his moves in the market are followed by amateur and professional investors.
Regulatory filings indicate the investor has taken a $1.6 billion short position that will accrue profits in case of a market downturn. Fillings indicate that he has taken negative options on the S&P 500 and The NASDAQ 100, representing the US economy. The fillings through his asset management firm Scion Asset Management show large stakes against the two stock indexes that give him the right to sell the asset at the particular price.
The short bets come as the S&P 500 has risen by about 16% year to date, and the Nasdaq 100 is also up by about 28%. Nevertheless, the two indexes came under pressure at the end of the third quarter. The NASDAQ posted its biggest monthly loss for the year in September, signaling waning upward momentum.
The NASDAQ dropping 5.8% in September is already sounding warning bells of a potential market reversal. The pullback comes as Burry continues questioning the slowing of the US economy amid the high-interest rate environment. While most economics predict a soft landing, Burry remains skeptical; thus, the short bet on the NASDAQ and the S&P 100 represents the US economy.
Even though Burry is pessimistic about the overall stock market outlook, he does not always get it right. In January he tweeted “Sell” to his 1.4 million followers. Barely a month later had, he admitted he was wrong as he wrote: “I was wrong to say sell.”
What followed was the market rally, with the S&P 500 recouping all the losses accrued in 2022. The Nasdaq 100 also saw its year gains surge to over 40% affirming the bull trend. Likewise, when inflation was at its peak last year, Burry predicted a stock market crash, suggesting that the S&P 500 would bottom below 1900 based on how it has fared during past crashes. However, that is yet to come true a year after as inflation has declined significantly.
Michael Burry of Scion Asset Management
Burry was also burned when he opened a short position on Tesla, reiterating that the electric vehicle giant was overvalued. While taking the short position in 2020, he advised the company’s CEO, Elon Musk, to use the opportunity to raise capital by issuing more shares. While the stock was trading for $250 at the time, it ended up doubling in value, putting Burry in a big loss in his short position.
Burry also predicted in the summer of last year that American households faced the risk of exhausting their savings by year-end owing to rising prices and soaring borrowing costs. He warned of a risk of a decline in consumer spending that would erode corporate profits. For now, consumer spending has proved to be resilient, with the economy holding steady, supported by a solid labor market.
While the famed investor remains bearish heading into year end, he remains bullish on some stocks that other hedge funds are closely following. Keeping this economic outlook in mind, let's have a peek at Michael Burry stocks that other hedge funds are sweet on too.
Our Methodology
Despite going short, the S&P 500 Burry is still long some plays that other hedge funds also like. We have compiled a list of some of the legendary investor top picks heading into year end amid the market crash and recession concerns. The following data is gathered from Scion Asset Management’s Q2 2023 13F filing with the SEC. We sorted the stocks by how many hedge funds owned them in June 2023. The data only includes the 900+ hedge funds tracked by Insider Monkey that filed 13Fs for Q2 2023.
Michael Burry Stocks Other Hedge Funds Like Too
15. Signet Jewellers Limited (NYSE:SIG)
Percentage of Scion Asset Management’s portfolio as of Q2 2023: 0.31%
Number of Hedge Fund Holders: 23
Signet Jewellers Limited (NYSE:SIG) is the world’s largest jewelry retailer that operates jewelry stores in malls, mall-based kiosks, and off-mall locations under the Kay Jewellers Kay Jewels Outlet and Jared the Galleria of Jewellery.
Signet Jewellers Limited (NYSE:SIG) is down by about 1% year to date, having warned mid-year that the pandemic-driven decline in dating and reduction in discretionary spending will weigh on sales. Consequently, the company cut its full-year sales to between $7.1 billion and $7.3 billion from a previous forecast of $7.67 billion and $7.84 billion. Amid the concerns, Scion Asset Management cut its stakes in the company in the second quarter to $5.5 million from $9.7 million.
In the second quarter of 2023, 23 hedge funds had a stake in Signet Jewellers Limited (NYSE:SIG). In Q2, the company’s biggest hedge fund holder, Select Equity Group, owned 8.72 million shares of the company worth $569.13 million.
14. Vital Energy, Inc. (NYSE:VTLE)
Percentage of Scion Asset Management’s portfolio as of Q2 2023: 0.32%
Number of Hedge Fund Holders: 23
Vital Energy, Inc. (NYSE:VTLE) is an independent energy company that acquires, explores and develops oil and gas properties in Texas the US. With energy prices edging higher amid the crude supply cuts by Russia and Saudi Arabia, the company remains well-positioned to benefit from higher prices.
Likewise, Vital Energy, Inc. (NYSE:VTLE) boasts of a large institution holding at 71%. The holding comes as the company continues to expand its acreage in the Permian Basin, where deal-making is gathering pace amid declining reserves. Scion Asset Management held stakes worth $5.6 million as of the end of the second quarter, which accounted for 0.32% of the portfolio.
After sifting through 910 hedge funds for their June quarter of 2023 investments, Insider Monkey discovered that 23 had bought and owned Vital Energy, Inc. (NYSE:VTLE)’s shares, up from 18 in the preceding quarter. Among Michael Burry stocks that other hedge funds also fancy, Vital Energy, Inc. (NYSE:VTLE) ranks fourteenth. Israel Englander’s Millennium Management is Vital Energy, Inc. (NYSE:VTLE)’s largest shareholder since it owns a stake worth $15.84 million.
13. Hanesbrands Inc. (NYSE:HBI)
Percentage of Scion Asset Management’s portfolio as of Q2 2023: 0.1%
Number of Hedge Fund Holders: 23
Hanesbrands Inc. (NYSE:HBI) is a small-cap consumer goods company that designs, manufactures, and sells basic apparel for men, women, and children. It operates under three segments: innerwear, activewear, and international.
Hanesbrands Inc. (NYSE:HBI) has underperformed the overall market heading into year end, going by the 24% year-to-date slide. The underperformance comes on the company crumbling amid inflationary pressure that continues to hurt its margins. It is also grappling with a persistent macro-driven slowdown in consumer spending. Despite the underperformance, hedge funds are still long the basic apparel company. Scion Asset Management held $1.82 million worth of stakes in Hanesbrands Inc. (NYSE:HBI) as of the second quarter, accounting for 0.1% of the portfolio.
A total of 23 hedge funds in Insider Monkey's database had stakes in Hanesbrands Inc. (NYSE:HBI) as of the end of the second quarter of 2023. The company's biggest stakeholder is Lyrical Asset Management of Andrew Wellington and Jeff Keswin, with a $40.51 million stake.
12. The RealReal, Inc. (NASDAQ:REAL)
Percentage of Scion Asset Management’s portfolio as of Q2 2023: 0.19%
Number of Hedge Fund Holders: 24
The RealReal, Inc. (NASDAQ:REAL) operates an online marketplace for the resale of luxury goods in the US. It offers various product categories, including women’s fashion, men’s fashion jewelry, and watches. While the company has been under pressure over the past two years celebrity portfolio manager Burry started accumulating position early this year
Burry has been building a position in the aftermath of The RealReal, Inc. (NASDAQ:REAL) appointing a new CEO and banking on his turnaround plans. Scion Asset Management has bolstered its stake in the company to $3.3 million, up from $862,397 at the start of the year.
A total of 24 hedge funds in Insider Monkey's database had stakes in The RealReal, Inc. (NASDAQ:REAL) as of the end of the second quarter of 2023, compared to 19 in the previous quarter. It ranks twelfth among the Michael Burry stock picks that other hedge funds favor.
The biggest stakeholder of The RealReal, Inc. (NASDAQ:REAL) is Woodson Capital Management of James Woodson Davis, with a $10.88 million stake.
11. Qurate Retail, Inc. (NASDAQ:QRTEA)
Percentage of Scion Asset Management’s portfolio as of Q2 2023: 0.08%
Number of Hedge Fund Holders: 25
Qurate Retail, Inc. (NASDAQ:QRTEA) is a consumer cyclical play with operations in the video and online commerce industries. The company markets and sells consumer products through merchandize-focused televised shopping programs, internet, and mobile applications. Burry investment firm also built a $1.48 million position in the company in the second quarter of 2023.
Qurate Retail, Inc. (NASDAQ:QRTEA) has underperformed going by the 71% year-to-date slide. Nevertheless, institutions continue to jostle for positions, optimistic about their long-term prospects and divided offerings. Citigroup is the latest to build a position in the company by purchasing 647,875 shares. The investment came on the company announcing a $2 cash dividend.
In the second quarter of 2023, 25 hedge funds had a stake in Qurate Retail, Inc. (NASDAQ:QRTEA) compared to 33 in the previous quarter. In Q2, the company’s biggest hedge fund holder, FPR Partners, owned 28.20 million shares of the company worth $27.91 million.
10. Euronav NV (NYSE:EURN)
Percentage of Scion Asset Management’s portfolio as of Q2 2023: 0.04%
Number of Hedge Fund Holders: 26
Euronav NV (NYSE:EURN) is a company that uses crude oil to transport and store worldwide. The company offers floating storage and offloading services. It also owns and operates a fleet of vessels. The company took a hit early in the year after oil tanker company Frontline terminated a $4.2 billion merger deal. The merger would have resulted in the world’s largest publicly listed tanker company.
While Euronav NV (NYSE:EURN) is down by about 6% year to date, Burry held $805,138 worth of shares in the company as of the end of the second quarter. The investment accounts for 0.04% of the portfolio.
As of Q2 2023, 26 out of the 910 hedge funds part of Insider Monkey’s database had bought a stake in Euronav NV (NYSE:EURN). The firm’s largest investor is Israel Englander’s Millennium Management, with a $34.18 million stake.
9. Stellantis N.V. (NYSE:STLA)
Percentage of Scion Asset Management’s portfolio as of Q2 2023: 0.32%
Number of Hedge Fund Holders: 27
Stellantis N.V. (NYSE:STLA) is a company that designs, manufactures, and sells automobiles, light commercial vehicles, engines, transmission systems, and product systems worldwide. Its products encompass luxury and premium passenger vehicles, pickups, SUVs, and commercial vehicles.
Stellantis N.V. (NYSE:STLA) is one of the automakers that have fared well since the 2008 financial crisis. Together with Ford and General Motors, the trio has returned almost $85 billion to shareholders through dividends and buybacks. The solid return on investment underscores why the stock is a firm favorite among hedge funds. Stellantis held $5.7 million shares in the stock as of the end of the second quarter, accounting for 0.32% of its portfolio.
Insider Monkey analyzed the investments of 910 hedge funds in the second quarter of 2023 and found that 27 of them had acquired and held company shares. This means about 3% of the hedge funds in the analysis were invested in the firm. Karthik Sarma’s SRS Investment Management is Stellantis N.V. (NYSE:STLA)’s largest shareholder since it owns a stake worth $148.53 million.
8. Nexstar Media Group, Inc. (NASDAQ:NXST)
Percentage of Scion Asset Management’s portfolio as of Q2 2023: 0.40%
Number of Hedge Fund Holders: 30
Nexstar Media Group, Inc. (NASDAQ:NXST) is a television broadcasting and digital media company that acquires, develops, and operates television stations, interactive community websites, and digital media services. It offers free programming to television viewing audiences and operates programs, or provides sales and other services to various markets.
While the stock is down by about 26% year to date, it enjoys a big institutional holding led by Burry’s Scion Asset Management. The hedge fund held $2.50 million worth of Nexstar Media Group, Inc. (NASDAQ:NXST) as of the second quarter accounting for 0.14% of the portfolio.
As of the end of the second quarter of 2023, 30 hedge funds tracked by Insider Monkey have stakes in Nexstar Media Group, Inc. (NASDAQ:NXST), up from 23 in the first quarter of 2023. It holds the eighth position among Michael Burry's stock selections that have garnered favor among other hedge funds. The biggest stakeholder of Nexstar Media Group, Inc. (NASDAQ:NXST) is Amy Mineola’s Cardinal Capital, which owns a $129.01 million stake in the company.
7. Generac Holdings Inc. (NYSE:GNRC)
Percentage of Scion Asset Management’s portfolio as of Q2 2023: 0.47%
Number of Hedge Fund Holders: 43
Generac Holdings Inc. (NYSE:GNRC) designs, manufactures, and sells power and generation equipment energy storage systems, and other power products for residential light commercial and industrial markets worldwide.
The stock has held firm as it is flat for the year despite coming under pressure on the company warned of a slump in residential sales because of falling demand. Generac Holdings Inc. (NYSE:GNRC) was forced to cut its full-year revenue outlook to a decline of between 10% and 12% from an initial drop of between 6% and 10%.
Despite the warning, Scion Asset Management held stakes worth $8.2 million in the company, accounting for 0.47% of its total portfolio.
Generac Holdings Inc. (NYSE:GNRC) saw an increase in hedge fund interest in the second quarter of 2023, according to Insider Monkey's database. The database, which tracks 910 hedge funds, showed that 43 of them had stakes in the company, up from 32 in the previous quarter. This means that about 4.7% of the hedge funds in the database were invested in the power generation equipment manufacturer. During this period, the biggest stakeholder of Generac Holdings Inc. (NYSE:GNRC) was John W. Rogers’ Ariel Investments, which owns a $260.87 million stake in the company.
6. MGM Resorts International (NYSE:MGM)
Percentage of Scion Asset Management’s portfolio as of Q2 2023: 0.37%
Number of Hedge Fund Holders: 50
MGM Resorts International (NYSE:MGM) operates casino hotel and entertainment resorts. Its Casino offers lots and table game and online sports faming and iGaming. Its customers include premium gaming customers, leisure and wholesale travel customers, and business travelers.
Scion Asset Management held $6.588 million worth of shares in MGM Resorts International (NYSE:MGM) for a portfolio size of 0.37%. The hedge fund first invested in the company in the fourth quarter of last year.
By June 2023, 50 hedge funds had invested in MGM Resorts International (NYSE:MGM), according to a database of 910 hedge funds. This means that about 5.5% of the hedge funds in the database were shareholders of the hospitality and entertainment companies. Keith Meister’s Corvex Capital is the largest stakeholder of MGM Resorts International (NYSE:MGM), with 6.42 million shares worth $282.13 million.
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Disclosure: None. 15 Michael Burry Stocks Other Hedge Funds Like Too is originally published on Insider Monkey.