According to Michael Burry’s Scion Asset Management filing, the hedge fund traded out shares of portfolio companies like Alphabet Inc. and Facebook parent company Meta Platforms.
Michael Burry, a well-known investor, is making headlines once more for his opinion on the stock market. This time, the US Sec Filings make his company’s stock market position known. According to recent filings from Michael Burry’s Scion Asset Management dated August 15, the hedge fund has disposed of shares of portfolio firms like Alphabet Inc. and Facebook parent Meta Platforms. The information reflects owning The GEO Group shares as of the portfolio reporting date of June 30, 2022. (GEO).
Michael Burry only owned shares of Geo Group Inc., which operates private prisons, at the end of the June quarter. He held nearly 501,360 shares of the Florida-based company’s stock, which closed on Monday at $7.60, 10% higher, with a volume of 12.51 million, or nearly 877% more trading volume than the average volume.
According to US Sec regulations, all investment managers who handle more than $100 million worth of US stocks are required to disclose their stock holdings on US stock exchanges. It is not necessary to disclose stakes on non-US-traded securities or short positions.
It will be interesting to see how the economy and stock market respond to the new circumstances brought on by the Fed’s 2022, 225 basis point rate hikes intended to rein in inflation. Americans are reportedly seeking credit because there is no longer easy money available, which could lead to a debt trap for them.
According to a recent analysis by the Center for Microeconomic Data at the Federal Reserve Bank of New York, total household debt increased by $312 billion in the second quarter of 2022, or 2.0%, compared to the first quarter. Balances have climbed by $2 trillion since the end of 2019, shortly before the pandemic recession, bringing them to their current level of $16.15 trillion. Since the start of 2018, credit card balances have increased by $46 billion.
Michael Burry gained notoriety for correctly predicting the subprime mortgage crisis of 2007, which ultimately resulted in betting against mortgage securities reaping billions. A movie based on Michael Lewis’s book about the 2008 financial catastrophe, “The Big Short,” managed to depict every moment leading up to the world financial crisis.
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