Closing Positions

Michael Burry's Scion Asset Management Makes Big Moves in Q2

Closing Positions:

• Michael Burry's Scion Asset Management closed out positions in Safe Bulkers (SB) and Hudson Pacific (HPP).

New Stakes:

• Scion Asset Management took new stakes in Etsy (ETSY), General Motors (GM), and Bristol-Myers Squibb (BMY).
• The fund also initiated a small position in Apple (AAPL), increasing its stake by about 5%.

Betting on Consumer Spending:

• Burry's recent investments suggest he believes consumer spending will remain strong despite economic headwinds.
• Etsy, a marketplace for handmade and vintage goods, has benefited from increased online shopping during the pandemic.
• General Motors and Bristol-Myers Squibb are both consumer-facing companies with strong brands and loyal customer bases.

Caution on Chip Stocks:

• Scion Asset Management purchased bearish put options on the VanEck Semiconductor ETF (SMH), which includes Nvidia (NVDA) as its largest holding.
• This move indicates that Burry is concerned about the semiconductor industry's prospects in the face of slowing global growth.

Conclusion:

Michael Burry's investment moves in the second quarter reflect a cautious but nuanced view of the market. He is closing positions in companies exposed to economic weakness while betting on companies with strong consumer demand. His bearish outlook on the semiconductor industry is also notable given the sector's recent surge. These moves underscore Burry's reputation as a keen observer of market trends and a savvy investor who is not afraid to bet against the crowd.