The fourth quarter portfolio details of Michael Burry are out and they show the Big Short investor became a Big Buyer near the end of 2023 as he snapped up several new stakes in various companies. Burry's fund Scion Asset Management saw its total portfolio worth swell to a whopping $94 million, almost double from $44 million (excluding options) in the previous quarter. Michael Burry also gave up on his bet against the semiconductor industry and closed its short position on iShares Semiconductor ETF. From November 2023 through the end of January 2023 semiconductors rallied over 20%, giving a major blow to Burry's bet.
For this article we scanned Michael Burry's Scion Asset Management's Q4'2023 portfolio and picked 12 stocks in which the fund opened new positions during the last quarter of 2023. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).
Texas-based Bruker Corp (NASDAQ:BRKR) makes life sciences research and diagnostics products. Michael Burry's Scion Asset Management bought a $3.7 million stake in Bruker Corp (NASDAQ:BRKR) in the fourth quarter. Earlier this month JPMorgan upgraded Bruker Corp (NASDAQ:BRKR) to Overweight, citing strong guidance, among other factors. JPMorgan increased its price target on Bruker Corp (NASDAQ:BRKR) to $90 from $60.
As of the end of the fourth quarter of 2023, 32 hedge funds out of the 933 hedge funds tracked by Insider Monkey had stakes in Bruker Corp (NASDAQ:BRKR). In addition to BRKR Burry is also buying Alphabet Inc Class C (NASDAQ:GOOG), Amazon.com Inc (NASDAQ:AMZN) and Block Inc (NYSE:SQ).
Michael Burry's Stake: $3,867,500
Block Inc (NYSE:SQ) is having a difficult time lately, with its share price down about 8% over the past 12 months. Out of the 933 hedge funds tracked by Insider Monkey in the fourth quarter of 2023, 75 hedge funds had stakes in Block Inc (NYSE:SQ), significantly up from 60 hedge funds in the previous quarter.
Block Inc (NYSE:SQ) shares recently jumped after the company released Q4 results and gave a strong 2024 EBITDA guidance.
Block Inc's (NYSE:SQ) net income in the fourth quarter came in at 2 cents a share, much better than the loss of 93 cents a share it posted in the year-ago period.
Baron Fifth Avenue Growth Fund stated the following regarding Block, Inc. (NYSE:SQ) in its fourth quarter 2023 investor letter:
“During the quarter, we also added to our existing investment in Block, Inc. (NYSE:SQ). The company provides a point-of-sale technology to small businesses and operates the Cash App ecosystem of financial services for individuals. After the company reported solid quarterly result, it has also guided to reach a rule of 40 on GAAP profitability for fiscal year 2026 (implying that the combination of gross profit growth and GAAP operating margins would be at least 40%). We believe Block’s businesses are resilient, and greater management focus on cost discipline should drive further margin expansion over the long term. We also believe that Block has a long runway for growth, durable competitive advantages, and a robust track record of innovation.”
Michael Burry's Stake: $3,980,375
Tulsa, Oklahoma-based energy company Vital Energy Inc (NYSE:VTLE) ranks tenth in our list of the best new stocks to buy according to Michel Burry for 2024. Burry in the fourth quarter of 2023 bought a $3.98 million stake in Vital Energy Inc (NYSE:VTLE).
Earlier this month Vital Energy posted fourth quarter results. Adjusted EPS in the quarter came in at $2.55, surpassing estimates by $0.09. Revenue jumped 22.1% year over year to $444.52 million, beating estimates by $3.78 million.
Like Vital, Burry is also bullish on Alphabet Inc Class C (NASDAQ:GOOG), Amazon.com Inc (NASDAQ:AMZN) and Block Inc (NYSE:SQ).
Michael Burry's Stake: $4,267,500
Michael Burry's 2024 portfolio includes Warner Bros Discovery Inc (NASDAQ:WBD), as Scion Asset Management bought 375,000 shares of Warner Bros Discovery Inc (NASDAQ:WBD) in the last quarter of 2023.
Earlier this month, BofA Securities published its Growth 10 list which includes growth stocks with Buy ratings and EPS growth. Warner Bros Discovery Inc (NASDAQ:WBD) was part of this list.
As of the end of the fourth quarter of 2023, 56 hedge funds tracked by Insider Monkey had stakes in Warner Bros Discovery Inc (NASDAQ:WBD).
Longleaf Partners Fund stated the following regarding Warner Bros. Discovery, Inc. (NASDAQ:WBD) in its fourth quarter 2023 investor letter:
“The rules have improved how we analyze existing holdings and influenced the price at which we will buy a new holding and/or trim or add to an existing one. This has resulted in a higher level of resizing positions in the portfolio and exiting some long-term holdings this year. A good example in the portfolio today is Warner Bros. Discovery, Inc. (NASDAQ:WBD), a company that we bought too early but that remains a holding in the portfolio. Our average price for the initial WBD investment in 2021 was $26.48, or a P/V ratio in the mid-60s%. However, P/EV on the initial report was 79%. Under the new rules, we would not pay that price for the company today. We most likely would have waited for a mid-60s% P/EV, which would have equated to a $mid-teens entry price. In this case, we would have missed a too-large initial downturn in the stock price. The overweight rule dictated that we trimmed the position after the price ran up in the first half of 2023, which benefitted overall performance as the stock price subsequently fell again. However, even with the new rule lens, we remain confident in our case for the business and management’s ability to deliver going forward.”
Michael Burry's Stake: $4,272,100
Advance Auto Parts, Inc. (NYSE:AAP) is a key part of Michael Burry's 2024 portfolio as the investor bought a new stake in Advance Auto Parts, Inc. (NYSE:AAP) in the last quarter of 2023, worth $4.3 million.
Out of the 933 hedge funds in Insider Monkey's database, 32 hedge funds had stakes in Advance Auto Parts, Inc. (NYSE:AAP). The biggest stakeholder of Advance Auto Parts, Inc. (NYSE:AAP) during this period was D. E. Shaw which had a $212 million stake in Advance Auto Parts, Inc. (NYSE:AAP).
Palm Valley Capital Management made the following comment about Advance Auto Parts, Inc. (NYSE:AAP) in its Q3 2023 investor letter:
“During the third quarter, the Fund had three positions that detracted from performance by more than 10 basis points: Crawford & Co. (ticker: CRD/A, CRD/B), Advance Auto Parts, Inc. (NYSE:AAP), and TrueBlue (ticker: TBI). Advance Auto Parts is in the middle of a turnaround to bring operating performance closer to peers. Second quarter profit was short of expectations as pricing didn’t cover cost inflation, but comparable store sales improved into quarter end. While the firm experienced a credit rating downgrade, the balance sheet is supported by significant owned real estate.”
Michael Burry's Stake: $4,468,000
Scion Asset Management piled into resorts and casino operator MGM Resorts International (NYSE:MGM) heading in 2024 as Scion Asset Management bought 100,000 shares of MGM Resorts International (NYSE:MGM) in the fourth quarter of 2023. The total worth of these stakes was $4.5 million.
Earlier this month MGM Resorts International (NYSE:MGM) posted strong Q4 results which were helped by upbeat activity in Macau and Las Vegas. MGM Resorts International's (NYSE:MGM) adjusted EPS in the fourth quarter came in at $1.06, surpassing estimates by $0.35. Revenue jumped 22% year over year to $4.38 billion, beating estimates by $240 million.
In addition to Alphabet Inc Class C (NASDAQ:GOOG), Amazon.com Inc (NASDAQ:AMZN) and Block Inc (NYSE:SQ), MGM is a top Burry pick for 2024.
Longleaf Partners Fund stated the following regarding MGM Resorts International (NYSE:MGM) in its fourth quarter 2023 investor letter:
“MGM Resorts International (NYSE:MGM) & Hyatt – Hospitality companies MGM Resorts and Hyatt were both strong performers in the fourth quarter and for the year, outperforming expectations that the post-COVID travel rebound would ease in 2023. Casino and online gaming company MGM saw double-digit revenue growth and strong 2023 bookings in Las Vegas in the first half, which moderated in the second half but remained solid. A cybersecurity attack negatively impacted 3Q results, but MGM does not expect the $100 million hit to have a material effect on its financial condition and operational results for the year. MGM bought back discounted shares at a 15% annualized rate and authorized another $2 billion buyback in 4Q, which represents another 15% of the company.”
Michael Burry's Stake: $4,558,200
Amazon.com Inc (NASDAQ:AMZN) ranks sixth in our list of the top stocks in Michael Burry's 2024 portfolio. Michael Burry initiated a new position in Amazon.com Inc (NASDAQ:AMZN) in the fourth quarter of 2023 as Scion bought a $4.6 million stake in Amazon.com Inc (NASDAQ:AMZN).
Amazon.com Inc (NASDAQ:AMZN) is one of the most popular stocks among the 933 hedge funds tracked by Insider Monkey. A total of 293 hedge funds had stakes in Amazon.com Inc (NASDAQ:AMZN).
Polen Global Growth Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its fourth quarter 2023 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN), which saw significant price appreciation throughout much of 2023, saw its share price increase materially in Q4 following the company’s Q3 2023 earnings report. We have yet to see the long-awaited re-acceleration in AWS (Amazon Web Services) revenue growth. However, in our estimation, the segment’s growth has likely bottomed, and we could see accelerating growth in 2024. Further, Amazon’s e-commerce business has gradually re-accelerated from 2022’s levels and, perhaps most importantly, the company’s margins and free cash flow have rebounded materially from last year. This rebound in margins and free cash flow at Amazon has been a key component of our long-term thesis for the business, and we expect the improvement in these metrics to continue into 2024 and beyond (though perhaps not linearly) as the company continues to optimize costs and capital expenditures. Our position in Amazon reflects our positive long-term expectations of the business, and it is currently our largest absolute weight in the Portfolio.”
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Disclosure: None. Michael Burry's 2024 Portfolio: 12 New Stock Picks is originally published on Insider Monkey.
