Zhitong
2024.05.16 01:46
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The prototype of the movie "The Big Short" Q1 aggressively bought gold, sharply increased holdings in JD.com and Alibaba

The prototype of "The Big Short", Michael Burry's Scion Asset Management saw an increase in total market value of holdings in the first quarter, adding 5 stocks, increasing holdings in 11 stocks, and clearing out 14 stocks. Among them, Scion increased its holdings in JD.com by 80% and Alibaba by nearly 67%. In addition, the company also initiated a position in the Sprott Physical Gold Trust, a physical gold asset mutual fund

According to the disclosure from the U.S. Securities and Exchange Commission (SEC), Scion Asset Management, managed by Michael Burry, the prototype of the Hollywood movie "The Big Short" and a globally renowned hedge fund manager, submitted its first-quarter U.S. stock holdings report (13F) as of March 31, 2024.

Statistics show that the total market value of Scion, under Michael Burry from "The Big Short," was approximately $103 million in the first quarter, compared to around $94.6 million in the previous quarter, showing a slight increase in market value. The asset management company added 5 new stocks to its portfolio in the first quarter of this year, increased holdings in 11 stocks, did not reduce holdings in any stocks, and cleared out 14 stocks. The top ten holdings accounted for 75.41% of Scion's total market value.

Among the top ten major holdings in the first quarter under Michael Burry's Scion, Burry, who is known for his short-selling style, unusually increased his holdings in all of the top ten holdings. Burry achieved ultimate victory in a reverse bet against mortgage loans on the eve of the 2008 financial crisis, making a fortune in this global financial crisis and rising to fame.

Among the top ten major holdings, JD.com (JD.US), the top holding of Burry's Scion Asset Management, saw a significant increase of 80%, making it the second-largest major holding. The Chinese e-commerce giant Alibaba (BABA.US) also saw an increase of nearly 67%.

**In the top ten major holdings, the mutual fund focusing on physical gold assets—Sprott Physical Gold Trust (PHYS.US)—is a new addition to the institution's portfolio. It directly holds physical gold, providing investors interested in holding physical gold bars with an investment alternative under exchange trading. Sprott Physical Gold Trust ranked fifth once established, indicating that Michael Burry from "The Big Short" is very optimistic about the future trend of gold in the first quarter. With multiple stimuli such as expectations of Fed rate cuts and geopolitical tensions, the spot and futures prices of gold have been soaring this year, finally reaching a historical high in April.In April, the price of gold once reached a historical new high of over $2,400 per ounce, mainly due to market concerns at the time about a potential escalation of the Middle East war due to an Iranian attack on Israel. U.S. healthcare service provider Cigna (CI.US) and European oil giant BP (BP.US) were also new additions to the top ten holdingsSpecifically, JD.com (JD.US) ranks as the top holding under Barry's Scion, with a holding of 360,000 shares, a holding market value of approximately $9.86 million, accounting for 9.53% of the investment portfolio, a significant increase of 80% from the previous quarter.

Alibaba Group (BABA.US) ranks as the second largest holding of the institution, with a holding of 125,000 shares, a holding market value of approximately $9.05 million, accounting for 8.74% of the investment portfolio, a significant increase of 66.67% from the previous quarter.

HCA Healthcare (HCA.US) ranks as the third largest holding, with a holding of approximately 25,000 shares, a holding market value of approximately $8.34 million, accounting for 8.06% of the investment portfolio, a 25% increase from the previous quarter.

Citigroup Inc. (C.US) ranks as the fourth largest holding, with a holding of 125,000 shares, a holding market value of approximately $7.91 million, accounting for 7.64% of the investment portfolio, a 25% increase from the previous quarter.

Sprott Physical Gold Trust (PHYS.US) ranks fifth, with a holding of approximately 440,000 shares, a holding market value of approximately $7.62 million, accounting for 7.37% of the investment portfolio, and is the institution's top new position in the first quarter.

Among the top ten heavy holdings under Barry's Scion, the rankings of targets 6-10 are: Square Inc. (SQ.US), Cigna Corporation (CI.US), Advance Auto Parts Inc. (AAP.US), BP Plc (BP.US), and Vital Energy Inc. (VTLE.US). These targets have all been significantly increased by the institution, with Square Inc. known as the "American version of Alipay" receiving an 80% increase, while BP Plc and Cigna Corporation (CI.US) are new positions in the first quarter.

Looking at the changes in holding proportions, the top five buy-in targets for "big short" Michael Barry's Scion in the first quarter are: Sprott Physical Gold Trust, Cigna Corporation, BP Plc, First Solar Inc. (FSLR.US), and Baidu Inc. (BIDU.US). Among them, the U.S. solar giant and Chinese tech giant Baidu are new positions, ranking 13th and 14th in Barry's Scion's holding proportion rankings, respectivelyScion, under Michael Burry's management, sold its top five positions in the first quarter as follows: Oracle (ORCL.US), CVS Health (CVS.US), Nexstar Media Group (NXST.US), Google (GOOGL.US), and Amazon (AMZN.US). In the first quarter, the prominent US tech giants Amazon, Google, and Amazon were all completely sold off by "big short" investors. Since 2023, the stock prices of these tech giants have been steadily rising, and this move by the "big short" investors may be for profit-taking.