In this article, we discuss top 10 stock picks of Michael Burry’s 2022 portfolio. In order to skip our detailed analysis of Burry’s hedge fund performance, stock selection and future market predictions, go directly to Michael Burry’s 2022 Portfolio: Top 5 Stock Picks .
Michael Burry is the famous investor who predicted the housing market crash of 2007 a couple years before anybody could see it. Resisting revolts from his investors over the magnitude of his claims, Burry ultimately made $100 million in personal profits from betting against the subprime loan market, and made his clients well over $700 million. The story of this visionary bet was chronicled in Hollywood film ‘The Big Short’, where actor Christian Bale played Burry’s character and aptly emulated the investor’s eccentric mannerisms as well.
Burry holds an MD from the Vanderbilt University School of Medicine, but did not practice medicine to pursue his interest, and talent, in financial investing. He founded Scion Capital in 2000, and generated extraordinary returns for his clients. From 2000 to 2008, after which he liquidated his hedge fund in order to focus on his personal wealth, Scion Capital posted returns of 489.34%, while the the S&P 500 returned just below 3% during the same period. The investor reopened his hedge fund, this time named Scion Asset Management , in 2013 and initially started investing exclusively in water, gold, and farm land. ‘Greatest Speculative Bubble of All Time’
Come 2022, and Burry once again has views on the market not everybody likes to hear. In May, the investor noted that the US market seems to be following the patterns of previous bubbles, leaving it positioned for a crash of monumental proportions. The tech-heavy Nasdaq Composite has lost 27% in the year to date, and mega-cap stocks such as Alphabet Inc. (NASDAQ: GOOG ), Meta Platforms, Inc. (NASDAQ:FB), and Amazon.com, Inc. (NASDAQ: AMZN ) have plummeted significantly in recent months. Burry thinks the S&P 500’s trajectory over the last 10 years is similar to its chart for the 10 years prior to the dot.com crash in 2000, as well as the Dow’s chart for the decade leading up to the Great Crash of 1929. He blames human nature for this repetition of history, where stock market bubbles are formed and ultimately burst with painful consequences. In June 2021, he tweeted about the ‘Greatest Speculative Bubble of All Time’ predicting that excessive speculation and loans could cause a crash. He has also said in since-deleted tweets that the market is ”dancing on a knife’s edge’. In the fourth quarter of 2021, Scion Asset Management held a total of 6 stocks. In the first quarter of 2022, the fund sold out of all its stocks except one, and added a number of tech names with a total portfolio of 12 stocks. Michael Burry also placed a $36 million bet against Apple Inc. (NASDAQ: AAPL ), with a put position on 206,000 of the firm’s shares.
Let’s now take a look at the top 10 stocks to buy according to Michael Burry.
Our Methodology
The Q1 2022 portfolio of Michael Burry’s Scion Asset Management was used to pick its top 10 holdings. Hedge fund sentiment around each stock has been derived from Insider Monkey’s database of 924 elite hedge funds tracked at the end of the fourth quarter of 2021. Michael Burry’s 2022 Portfolio: Top 10 Stock Picks
Number of Hedge Fund Holders: 67
Scion Asset Management’s Stake Value: $9.12 million
Scion Asset Management’s 13F Portfolio: 4.53%
Global Payments Inc. (NYSE:GPN) provides software solutions and payment technology for digital-based payments around the world. Scion Asset Management, according to its 13F filings for the first quarter of 2022, owns 67,000 shares of the firm at a value of $9.12 million.
Out of all the hedge funds tracked by Insider Monkey at the close of the fourth quarter of 2021, Global Payments Inc. (NYSE:GPN) was held by 67 hedge funds with a combined value of $3.31 billion. This is down from 68 hedge funds a quarter ago with $3.46 billion worth of positions in the company. Its largest shareholder in Q1 2022 was Orbis Investment Management , which held a $763 million stake in the firm consisting of 5.57 million shares.
On May 3, Global Payments Inc. (NYSE:GPN) was given a ‘Buy’ rating by Citi analyst Ashwin Shirvaikar, along with a price target of $180. The analyst noted that the stock fell 9% after the company downwardly revised its FY22 revenue outlook by $35 million, which he […]
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