Macro

Burry's Big Bet on Gold, Exits Tech for Renewables & China Stocks

Michael Burry shifts focus to gold and renewable energy, exits tech giants like Amazon and Alphabet, signaling a strategic investment pivot.

By Alex P. Chase

5/16, 12:52 EDT
S&P 500
iShares 20+ Year Treasury Bond ETF
iShares 7-10 Year Treasury Bond ETF
Amazon.com, Inc.
Alibaba Group Holding Limited
Booking Holdings Inc. Common Stock
BP p.l.c.
Cigna Corporation
First Solar, Inc.
Alphabet Inc.
JD.com, Inc.
MGM Resorts International
Oracle Corporation
Sprott Physical Gold Trust ETV
Warner Bros. Discovery, Inc. - Series A
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Key Takeaway

  • Michael Burry shifts investment focus to gold and renewable energy, exiting tech giants Amazon and Alphabet in Q1 2024.
  • Scion Asset Management's portfolio grows to $103.49 million, with significant buys in Sprott Physical Gold Trust and First Solar Inc.
  • Top holdings now include JD.com and Alibaba, indicating a strong belief in the value of Chinese retail giants.

Burry's Strategic Shift

Michael Burry, the investor renowned for predicting the 2008 financial crisis, has made significant changes to his investment strategy in the first quarter of 2024, as revealed in the latest 13F filing for his hedge fund, Scion Asset Management LLC. The total market value of Scion's 13F securities rose to $103.49 million, with Burry focusing on physical commodities and renewable energy, moving away from certain tech giants. This pivot is highlighted by his top buys, including the Sprott Physical Gold Trust ETV, Cigna Holding Co, and significant investments in the energy sector through BP Plc ADR and First Solar Inc. Additionally, Burry increased his stakes in Chinese retail giants JD.com Inc and Alibaba, signaling a strong belief in their rising value.

Exiting Tech Giants

In a notable shift, Burry divested from several high-profile tech stocks, including complete exits from Alphabet Inc. and Amazon.com Inc., which suggests a reevaluation of their growth prospects. This move is part of a broader strategy that saw Burry selling off positions in other companies like Big Lots Inc., Booking Holdings Inc., MGM Resorts International, Oracle Corp., and Warner Bros Discovery Inc. These divestments reflect Burry's cautious stance towards sectors he perceives as potentially overvalued or facing headwinds.

Bullish on Gold and China

Burry's investment in the Sprott Physical Gold Trust, making it his biggest bet, aligns with a broader market trend where gold prices have surged to record highs amid geopolitical tensions and persistent inflation concerns. This investment strategy is bolstered by his increased holdings in Alibaba Group Holding Ltd. and JD.com Inc., both of which have seen their values rally in 2024. The KraneShares CSI China Internet ETF, which includes Alibaba and JD.com, has risen more than 16% since the year's start, indicating a positive outlook on Chinese stocks.