Michael Blurrythe guru of “The Big Short”, chose Chinese technology giants in 2024, and this year he decided to redouble his reinforcements: he increased his stakes in Alibaba and JD.comand bought shares of Baidu.
It should be noted that Burry is known for predicting and making profits after the real estate bubble burst in the 2000s. Their risky bet was immortalized in the book and movie The Big Short.
This is how this guru’s investment fund, Burry’s Scion Asset Management, revealed in the update of its portfolio in the first quarter it had raised its positions in Alibaba and JD.comthe two titans of Chinese trade.
He had also bought shares of Baiduthe great search engine known as the Chinese Google. It was later known that he expanded his positions in Alibaba and Baidu in the second quarter while reducing its stake in JD.comand about the end of the year increased all three bets in the third quarter.
In the 12 months prior to September 2024Scion quadrupled its positions in Alibaba and JD.com. He went from having 50,000 shares in Alibaba, worth 4.4 million dollars (4.2 million euros), to 200,000 shares, worth 21.2 million (20.5 million euros).
The finance guru who opted for Baidu
In the case of JD.comincreased its titles from 125,000, worth 3.6 million dollars (almost 3.5 million euros), to 500,000, worth 20 million dollars (1.9 million dollars). Starting from scratch, he also accumulated 125,000 shares of Baidu worth 13.2 million dollars (about 12.8 million euros) in the nine months prior to last September.
Those three stocks were equivalent to 65% of Scion’s total portfolio, valued at $83 million (about €81 million), not including options, at the end of September.. Burry hedged his highly concentrated portfolio by purchasing put options against the three companies, for a notional value of $47 million (about €45.6 million) in the third quarter.
In the last year, Alibaba has appreciated 18.7%, JD.com, 41%, and while Baidu fell 30%.
Source: Ambito
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