July 19, 2024

Michael Burry’s Bold Shift: Tech Out, Gold and China In

Michael Burry, famed for his strategic foresight with mortgage bonds before the global financial crisis as showcased in “The Big Short,” has significantly rearranged his investment portfolio. In a recent disclosure to the Securities and Exchange Commission, Scion Asset Management, led by Burry, offloaded its shares in leading tech companies Alphabet Inc. (GOOGL) (GOOG) and Amazon.com Inc. (AMZN) during the initial quarter of the year. This adjustment also involved divesting completely from other major firms including Big Lots Inc. (BIG), Booking Holdings Inc. (BKNG), MGM Resorts International (MGM), Oracle Corp. (ORCL), and Warner Bros Discovery Inc. (WBD).

In a strategic pivot, Burry has shifted his focus towards commodities and emerging markets, particularly through investments in the Sprott Physical Gold Trust (PHYS). This move is timely as gold prices have soared to unprecedented highs in 2024 driven by geopolitical strife and persistent inflation fears, which have boosted the Sprott ETF’s share price by 16% to $18.50 as recorded at the last close.

Burry has also augmented his exposure to the Chinese market by increasing stakes in Alibaba Group Holding Ltd. (BABA) and JD.com Inc. (JD). Both companies are accessible to U.S. investors as American Depository Receipts (ADRs) and have seen an uptick in value. Notably, the KraneShares CSI China Internet ETF (KWEB), which includes these ADRs, has appreciated over 16% since the year’s commencement.

The SEC filing provides a snapshot of Burry’s holdings as of March 31, but it does not confirm whether he still maintains these positions or when the transactions specifically occurred. The document focuses exclusively on his U.S. stock and options holdings, without delving into other potential asset classes within his portfolio.

Burry’s recent portfolio adjustments suggest a strategic shift from established technology companies towards the potentially higher returns of gold and Chinese equities amidst the evolving economic landscape.

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