Michael Burry dumps stock portfolio after market crash warnings

Michael Burry’s Scion Capital Management dumped its entire equity portfolio in the second quarter as the legend of the ‘Big Short’ hedge fund raised its warnings of an impending stock market crash, a filing showed Monday.

According to the company’s latest 13-F filing, Scion sold its long positions on 11 companies in the second quarter, including bullish bets on Google parent Alphabet, Facebook parent Meta, Bristol-Meyers Squibb and Nexstar Media Group.

The holdings were cumulatively worth $165 million at the end of the first quarter.

Burry’s firm ended the second quarter with only one stock. Scion added 501,360 shares of Geo Group, a Florida-based company that invests in and manages private prisons, which were worth $3.3 million. Shares of Geo Group were up about 12% during trading Monday.

Michael Burry
Michael Burry has over 1 million Twitter followers.
WireImage

The Post has reached out to Scion Capital Management for comment on the filing. Burry turned down Bloomberg’s request for comment.

Major hedge funds must disclose their holdings in publicly traded companies through 13-F filings every quarter. The filings do not include information about short positions and are accurate at the end of each quarter, meaning Scion’s positions may have changed since the form was filed at the end of June.

Michael Burry
Burry’s company sold a stake in Facebook mom Meta.
NurPhoto via Getty Images

Burry’s bet on subprime mortgages was famously chronicled in the 2015 film ‘The Big Short’. He has amassed more than 1 million followers on Twitter, where he has regularly posted dire warnings about the state of the global economy in recent months.

The most recent warning came last Sunday, when Burry tweeted his view that the recent rally in the tech-heavy Nasdaq stock was likely to be short-lived.

“I can’t shake that silly pre-Enron, pre-9/11, pre-WorldCom feeling,” Burry said in the now-deleted tweet. He regularly deletes his tweets shortly after they are posted.

Last week, Burry warned that the US economy would have “winter on the way” due to a surge in consumer debt that could soon hamper spending and exacerbate a recession.

“Net consumer credit balances are rising at record pace as consumers choose violence over austerity in the face of inflation,” Burry tweeted.

Michael Burry
Michael Burry has repeatedly warned of an impending stock market crash.
AFP via Getty Images

“Remember the savings surplus problem? Not anymore. COVID helicopter money has taught people to spend again, and it’s addictive. Winter is coming.”

And in July, Burry argued that a brutal market sell-off that happened “perhaps halfway through” was over, with further declines as companies reported weaker earnings.


Add a Comment

Your email address will not be published.