Former hedge fund manager and “Big Short” fame investor Michael Burry made headlines earlier this year when he sold all of his positions except one. Burry added five new positions in the third quarter and increased the position in the lone carryover from the second quarter.
Here’s a look at the new holdings.
What Happened: Burry sounded the alarm throughout 2022 on the bear market and the likelihood that stocks would fall in price. The comments came after a filing revealed that Burry sold positions in Apple Inc AAPL, Meta Platforms Inc META and Alphabet Inc GOOGGOOGL in the second quarter.
The lone stock owned by Burry at the end of the second quarter was Geo Group Inc GEO, a for-profit prison company.
A new filing showed Burry increased his position in Geo Group and added five additional stocks in the third quarter.
The positions owned by Burry at the end of the third quarter were:
- Aerojet Rocketdyne Holdings Inc AJRD: 132,561 shares, $5.3 million
- Charter Communications Inc CHTR: 10,000 shares, $3.0 million
- Corecivic Inc CXW: 724,895 shares, $6.4 million
- Geo Group: 2,019,150 shares, $15.5 million
- Liberty Latin America Ltd LILAK: 155,761 shares, $958,000
- Qurate Retail Inc QRTEA: 5,000,000 shares, $10.1 million
Why It’s Important: In the third quarter, Burry quadrupled his position in Geo Group and also added a position in CoreCivic, another private prison operator. CoreCivic owns around 50 facilities and gets revenue from federal, state and local government agencies.
With the position in CoreCivic and the added position in Geo Group, Burry could be betting that private prison operators won’t be going away anytime soon, a common notion under the Joe Biden presidency. Burry could be betting on the companies diversifying away from prison revenue and also on a new president in 2024 being better for the sector.
The new position in Aerojet Rocketdyne could signal a belief that the space industry could be one Burry is betting on or maybe pressure for acquisition as the company was the target of an acquisition by Lockheed Martin Corp LMT previously, before the FTC sued to block the merger.
The other bets by Burry could signal some media-related stocks could be undervalued. Qurate Retail is the owner of QVC and HSN, assets that have strong ties to traditional television. The company is also working to grow its online commerce business through its Zulily segment which was acquired in 2015.
Charter Communications owns assets including Charter, Time Warner Cable and Bright House Networks which were the leftovers from former cable companies after multiple mergers and spinoffs. The company is one of the largest cable companies in the U.S. and also owns several sports and news networks.
Burry sounded the alarm on inflation and stocks falling further earlier this year. The fact Burry added positions in the third quarter could indicate that sentiment was improving, but based on the holdings, could favor certain sectors first.
Price Action on Monday, Market Close:
Geo Group shares were up 2.80% to $8.80.
Qurate Retail shares were up 4.69% to $2.01
Liberty Latin America shares were up 1.99% to $8.19.
CoreCivic shares were up 2.27% to $11.03.
Aerojet shares were flat at $49.12.
Charter shares were down 1.67% to $387.81.
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