Investment Guru Burry's Latest Bets: A Deep Dive into Scion Asset's Q2 Trades

Summary

Michael Burry, the renowned investor known for his prescient call on the 2008 financial crisis, has made some noteworthy changes to his portfolio in the second quarter of 2022. His investment firm, Scion Asset Management, disclosed these moves in a recent 13F filing with the SEC.

Key Takeaways:

• Burry's firm closed out positions in Safe Bulkers, adding exposure to Hudson Pacific Properties, Inc., and other stocks.
• Scion Asset Management initiated new positions in several consumer-oriented companies, suggesting a bullish outlook on consumer spending.
• The firm also purchased put options on a semiconductor ETF, signaling a potential bearish stance on the tech sector.

Detailed Analysis

Exited Positions: Safe Bulkers (SB)

Scion Asset Management closed out its entire position in Safe Bulkers, a Greek dry bulk shipping company. This move indicates a shift in Burry's view on the shipping industry, which has faced headwinds amidst global economic uncertainty.

New Positions: Hudson Pacific Properties (HPP)

On the other hand, Burry's firm initiated a new position in Hudson Pacific Properties, a REIT that invests in office and industrial properties in major coastal markets. This investment aligns with the firm's recent focus on real estate and infrastructure.

Consumer Sector Bets

Scion Asset Management added new positions in several consumer-oriented companies, including Kroger Co. (KR), Dollar General Corporation (DG), and Tractor Supply Co. (TSCO). These moves suggest a belief that consumer spending will remain resilient despite inflationary pressures.

Tech Sector Concerns

Burry's firm also purchased put options on the iShares Semiconductor ETF (SOXX), which tracks a basket of semiconductor stocks. This move signals a potential bearish view on the semiconductor industry, which has been impacted by supply chain disruptions and declining demand for electronics.

Conclusion

Michael Burry's Scion Asset Management has made several significant portfolio changes in the second quarter of 2022. These moves provide insights into Burry's investment strategy and his outlook on various sectors, including shipping, real estate, consumer goods, and semiconductors. While his investment decisions have historically garnered much attention, it is important to note that past performance is not indicative of future results. Investors should conduct their own research and consult with financial professionals before making any investment decisions.