The Big Short’s Michael Burry goes on a shopping spree

Michael Burry’s Scion Asset Management bought eight new shares in the fourth quarter of 2024 and sold his stake in three others.

This was revealed in Scion’s 13F filing with the US Securities and Exchange Commission, a mandatory report for all investment firms managing assets exceeding $100 million (around R1.8 billion).

Burry is an American investor and hedge fund manager best known for his early and highly profitable bet against the subprime mortgage market before the 2008 financial crisis.

Born in San Jose, California, in 1971, he earned a Bachelor’s degree in Economics from the University of California, Los Angeles, before pursuing a Doctor of Medicine degree at Vanderbilt University School of Medicine.

After completing his neurology residency, Burry shifted his focus to finance, initially managing his own investments. In 2000, he founded Scion Asset Management, a hedge fund specializing in value investing.

His keen analysis of the housing market’s structural weaknesses led him to predict and profit from the collapse of the subprime mortgage market in the mid-2000s.

This remarkable achievement was documented in Michael Lewis’s book The Big Short, which was later adapted into a film starring Christian Bale, Steve Carell, Ryan Gosling, and Brad Pitt.

Burry’s ability to spot overlooked opportunities and mispricings has been a cornerstone of his investment philosophy.

He focuses on undervalued companies and is known for taking contrarian positions. He often invests in stocks that are out of favour with mainstream investors.

His approach demands extensive research and patience, as he is willing to hold onto his positions for years.

Today, financial analysts and investors closely monitor Burry’s stock moves, given his track record of making bold, high-conviction bets.

Burry significantly reduced his holdings in 2023 and 2024, and currently, Scion’s portfolio consists of only 13 companies with a value of $77.44 million (R1.43 billion).

Scion Asset Management share portfolio

During the last quarter of 2024, Burry reduced his stake in three companies, including the Chinese multinational technology company Alibaba, which is the biggest stock in Scion’s portfolio.

He also reduced his share in another Chinese eCommerce company, JD.com, and an American healthcare organisation, Molina Healthcare.

Additionally, Burry sold three stocks – Shift4 Payments, Olaplex Holdings, and RealReal.

Notably, Burry purchased eight new stocks and increased his share in another company during the quarter.

The table below shows Michael Burry’s Scion Asset Management’s share portfolio on 31 December 2024.