According to the filing by Scion Asset Management with the U.S Securities and Exchange Commission (SEC), Michael Burry, a hedge fund manager, sold all but one of Scion Asset Management’s stock holdings during the second quarter. Burry, who is known for his prediction of the 2008 financial crisis, warned that winter was coming.
Michael Burry’s investment company Scion Asset Management sold all its stock holdings, with the exception of one in the second quarter. The disclosure filed by the U.S Securities and Exchange Commission (SEC), Monday shows.
Burry is most well-known for being the first investor who saw and profited from the U.S. subprime crisis in mortgage lending that took place between 2007 and 2010. Burry is featured in Michael Lewis’ book “The Big Short” about the mortgage crisis. It was made into a movie with Christian Bale.
Scion sold its long positions in 11 U.S. equity equities during second quarter. These included Google parent company Alphabet and Facebook parent company Meta Platforms. At the end of the first quarter, the asset management company held $165 million in U.S stocks.
Burry’s company ended the second quarter only with one stock holding. Scion purchased 501,360 shares in Geo Group Inc. (NYSE : GEO). According to its website, the Florida-based healthcare company provides a leading provider for enhanced in-custody rehabilitation and post-release support. It also offers electronic monitoring and community-based programs.
Twitter has been abuzz with warnings from the Big Short investor about market crashes. He tweeted Sunday that the recent rally at the tech-heavy Nasdaq would likely be short-lived. He wrote:
That pre-Enron feeling, pre-9/11 feeling, pre-Worldcom feeling is still hard to shake.
He also tweeted: “Contrary the internet and Twittersphere, bear market rallies have eclipsed 50% retracement, and led to lower lows.” He noted that it all “depends [on] what you define a bear rally or a cycle,” and listed April 1930 and November 1938, November 1938 and June 1946.
Burry also tweeted last week: “Nasdaq is a bull market, because it’s up 20% from its low?” This is unbelievable. The Nasdaq fell 78% to 2002’s low after 2000.
In a tweet, the Big Short investor warned that winter was coming to the U.S. Economy. He cited a rise in consumer debt. The famous investor added:
Do you remember the savings glut? There’s no need to save anymore. The Covid helicopter cash helped people spend again. It’s addictive. Winter is coming.