Big Short investor Michael Burry has made a bold move by betting half of his portfolio on Chinese stocks, and it's finally starting to pay off. Scion Asset Management, managed by Burry, has nearly half of its investments in Chinese tech giants like Alibaba.
Aggressive Buying in Chinese Stocks
Michael Burry began aggressively buying Chinese stocks in the fourth quarter of 2022, and his strategy seems to be working well. According to 13F filings, Scion Asset Management has around 46% of its portfolio invested in three major Chinese companies.
Surge in Chinese Stocks
Recent stimulus measures in China, including interest-rate cuts and liquidity support for the stock market, have led to a surge in Chinese stocks. This surge has been beneficial for investors like Michael Burry and David Tepper.
Michael Burry's Portfolio Holdings
Alibaba is the largest position in Burry's portfolio, accounting for 21% of his investments. He has also allocated 12% each to Baidu and JD.com. The recent gains in these stocks have boosted Burry's portfolio performance significantly.
Dovish Speak from Policymakers
The recent dovish speak from Chinese policymakers has contributed to the positive sentiment in the stock market. Measures like interest rate cuts and encouraging companies to buy back stock have further fueled the surge in Chinese stocks.
Burry's Estimated Gains
According to HedgeFollow, Michael Burry is estimated to have gained significantly from the surge in Chinese stocks. With Alibaba leading the charge, Burry's portfolio is likely to see substantial gains based on the recent market performance.
Tepper's Optimism on Chinese Stocks
Billionaire investor David Tepper shares Michael Burry's optimism on Chinese stocks and considers it a 'buy everything' moment. Tepper's hedge fund also holds a significant position in Alibaba, believing that there is more upside potential due to the current valuation levels.
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By: mfox@businessinsider.com (Matthew Fox)
Title: Michael Burry Sees Payoff with Big Bet on Chinese Stocks
Sourced From: markets.businessinsider.com/news/stocks/michael-burry-big-short-stock-investments-bets-chinese-equities-stimulus-2024-9
Published Date: Thu, 26 Sep 2024 19:27:43 +0000
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