ββ#SP500 #13F #Alibabaβ
π₯ Β«The Big ShortΒ» believes in China again
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The latest 13F filing shows that Scion Asset Management, led by Michael Burry, is refocusing its investments on China, holding significant stakes in
JD.com and Alibaba.
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Reminder: Burry's investment strategy centres on a rigorous application of Benjamin Graham's concept of margin of safety. By studying the fundamentals of companies, he selects undervalued stocks and does not hesitate to "short" stocks of overvalued companies. Over the past year, this tactic has paid off: the fund has nearly equalled the performance of the S&P 500, gaining more than 25%.
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An analysis of the current Form 13F report shows that Burry is once again betting on China.
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Michael Burry's portfolio is centred on a few key stocks, the largest of which are two Chinese retail giants:
JD.com (NASDAQ: JD), followed closely by Alibaba Group Holdings (NYSE: BABA). This means that the legendary bull thinks that the long selloff in these stocks has likely bottomed out.
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While the 13F report doesn't specify the exact date of the purchase, it can be assumed that successful investments in Chinese stocks brought the fund more than 10% in the first quarter alone. Alibaba in particular has performed exceptionally well, recording 18% growth over the past three months. Over this period, Michael has rotated the portfolio with a quarterly turnover rate of 54%.
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China's economic recovery has been quite nerve-wracking, with manufacturing growing and retail sales lagging. But history has proven once again that Burry's market sense can be trusted, especially since the properties he has chosen are indeed showing stable profits. So maybe we should support the trend?
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Profits to yβall!