The next ‘Big Short’? Famed investor dumps all stocks — except one

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Michael Burry’s investing acumen was made famous by the 2015 film “The Big Short,” which detailed how the former physician was among the first investors to predict and profit from the 2007-2010 subprime mortgage crisis.

Burry, 51, is once again pessimistic about the state of America’s economy. Burry’s Scion Asset Management sold off 11 U.S. stocks in the second quarter of 2022 and ended the quarter with just one stock investment, reports Bloomberg.

The hedge fund sold off its positions in major companies, including Alphabet Inc. and Facebook parent Meta Platforms Inc. The only stock it held as of June 30 was in private prison operator Geo Group Inc., according to a recent regulatory filing.

According to the filing, Scion held 501,360 shares of Florida-based Geo Group, which gained 11% on Monday.

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Bloomberg caveats the news by noting that the filing, which is required for all money managers overseeing more than $100 million of U.S. equities, only shows holdings in stocks that trade on American exchanges. The filing does not reveal non-U.S.-traded securities or short positions. Additionally, these filings provide “a snapshot of a fund’s holdings at the end of a quarter and may not reflect current investments.”

This isn’t the first time in recent months that Burry has pared back his portfolio. Markets Insider reports that Burry cut his portfolio’s total number of holdings from 20 to six in the third quarter of last year, “reducing its value from $140 million to $42 million in the space of three months.”

Bloomberg notes that Burry has become a cult figure on social media in recent months due to his ominous predictions of a coming downturn. In a now-deleted tweet, Burry raised the specter of a crash like the one he predicted 14 years ago. “As I said about 2008, it is like watching a plane crash. It hurts, it is not fun, and I’m not smiling,” the May tweet stated. Burry frequently deleted his tweets shortly after posting.

In another deleted tweet from Sunday, Burry said, “Can’t shake that silly pre-Enron, pre-9/11, pre-WorldCom feeling.” Burry was referring to the period between February 2000 and September 2002 in which the Nasdaq declined approximately 75%.

Burry has yet to comment on the recent disclosure.

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