Hedge fund manager Michael Burry’s Scion Asset Management sold all but one of its holdings in the second quarter, according to a filing with the Securities and Exchange Commission. All were sold; Burry, who famously predicted the 2008 financial crisis, predicted a stock market crash and warned of a coming winter.
Michael Burry sold all but one of his holdings
Michael Braly’s investment firm Scion Asset Management sold all but one of its holdings in the second quarter, according to a disclosurethe firm filed with the U.S. Securities and Exchange Commission on Monday.
Burry is known as the first investor to foresee and profit from the U.S. subprime mortgage crisis that erupted between 2007 and 2010. Michael Lewis’ book about this crisis, “The Big Short,” was made into a movie starring Christian Bale.
In the second quarter, Scion sold 11 stocks, including Google parent Alphabet, Facebook parent Metaplats, Bristol-Myers Squibb, Booking Holdings, Cigna Inc, Discovery, Global Payments, and Nexstar Media Group. The firm sold long positions in U.S. stocks. The asset manager held $165 million in U.S. stocks at the end of the first quarter.
Burry’s firm ended the second quarter with just one stock holding. Scion added 501,360 shares of Geo Group Inc (NYSE:GEO). The Florida-based health care company is a leading provider of enhanced prison rehabilitation, post-release support, electronic monitoring, and community-based programs, its website states.
The Big Short investor warned about the market crash on Twitter. His tweet Sunday suggested that the tech giant’s recent rally in the NASDAQ could be short-lived. He wrote:
I can’t shake the feeling of pre-Enron, pre-9/11, pre-Worldcom foolishness.
In another tweet, he opined:” Contrary to the Internet and the Twittersphere, there was a bear market rally that exceeded the 50% retracement and made new lows.” He noted that “[it] depends on how you define a bear rally and/or cycle,” and cited April 1930, November 1938, June 1946, and November 1968.
Burry further tweeted last week.” The NASDAQ is up 20% from its lows, so it’s in a bull market? Who makes this stuff up, since 2000 the Nasdaq has fallen 78% to the 2002 low and has done it 7 times.”
In a separate tweet, the Big Short investor warned that winter is coming for the U.S. economy, citing a surge in consumer debt.” Net consumer credit balances are rising at a record rate as consumers choose violence rather than spending down in the face of inflation,” this well-known investor wrote, adding.
Remember the savings surplus problem? Gone. Helicopter cash is teaching people to consume again, and it’s sickening. Winter is coming
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