Michael Burry’s portfolio, which has been critical of popular meme coins Shiba Inu (SHIB) and Dogecoin (DOGE) in recent years, has come to light. Burry, who foresaw the 2008 crisis and took action to add to his wealth, has invested in many stocks. Here are the details…
Michael Burry benefits from banking crisis
The regional banking crisis in the US revealed a contrast in stability between the large Wall Street banks and the smaller banks. The collapse of Silicon Valley Bank and Signature Bank had a widespread impact on US banking stocks. Clients withdrew their funds for fear of further negative impact. Fear and uncertainty dominated the market. However, some investors saw this as a good opportunity to buy. Meanwhile, the cryptocurrency market has seen a decline as regional banks appear less vulnerable. Cryptos are in decline as the US Federal Reserve’s decision to raise interest rates is still pending in the coming months.
Meanwhile, it was revealed that popular investor Michael Burry bought shares of distressed banks such as First Republic Bank, PacWest Bancorp, Western Alliance Bank and New York Community Bancorp. During that time, these stocks were trading at their lowest levels. A substantial recovery could have resulted in substantial profits. Market sentiment remained favorable for buying at lower prices amid concerns about new bank bankruptcies.
What’s in Burry’s portfolio?
Michael Burry is an American investor and hedge fund manager best known for his successful bet against the US housing market bubble in the mid-2000s. He was one of the first investors to realize the risk and potential of collapse of the housing market. He made substantial profits by betting against subprime mortgage bonds. It inspired the movie The Big Short, starring Christian Bale. Now, some assets in his portfolio draw attention.
An insight in his current portfolio: pic.twitter.com/KjGTqJUmhT
— Compounding Quality (@QCompounding) May 21, 2023
As disclosed in the annual shareholder report shared by Compounding Quality, Burry’s portfolio includes investments in New York Community Bancorp, Capital One, Wells Fargo, Western Alliance Bancorp, Huntington Bancshares, PacWest and First Republic Bank. Other key assets include JD.com and Alibaba Group, which make up the largest percentage of its portfolio, as well as energy shares Coterra Energy and Devon Energy. It also reportedly bought shares of the health and insurance company Cigna Group. After the recent US banking crisis, Burry acted similarly to the short selling he did in 2007. Because he predicted a potential market bottom in March 2023.
SHIB, DOGE criticized: What did he say?
cryptocoin.com As we reported, Michael Burry has previously expressed his opposition to Shiba Inu (SHIB), a cryptocurrency inspired by Dogecoin. He pointed out that its large circulating supply causes significant limitations on the potential price increase brought about. For this reason, he stated that he does not see SHIB as an important investment. He described Dogecoin as pointless.
