'Big Short' Investor Isn't Shorting Bank Stocks, He's Buying Them By The Heap

Zinger Key Points
  • Michael Burry is buying shares of banks including First Republic, Western Alliance, PacWest and others.
  • Burry also made significant additions to Alibaba and JD.com, with the latter becoming his largest position.

Famed “Big Short” investor Michael Burry made some changes to his portfolio, signaling a newfound interest in banking stocks amid the regional banking crisis, according to Scion Capital's latest 13F filings.

The renowned investor, known for profiting from the subprime mortgage crisis in 2008, opened up positions in First Republic Bank, Western Alliance Bancorporation WAL, PacWest Bancorp PACW, Wells Fargo & Co WFC, and New York Community Bancorp, Inc. NYCB.

Burry’s interest in the banking sector comes at a time when regional banks face a crisis that has drawn comparisons with the 2008 financial crisis. Notably, First Republic Bank was recently involved in the turmoil when regulators seized it, with JPMorgan Chase & Co JPM subsequently acquiring the bank’s assets.

But Burry’s investment suggests a potential turnaround.

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The Scion Capital investor also made significant additions to Alibaba Group Group Holdings Ltd – ADR BABA and JD.Com Inc JD, with the latter becoming his largest position. That investment in two of China’s largest e-commerce companies suggests Burry is bullish on China’s tech industry despite regulatory uncertainties.

The investor also exited positions in MGM Resorts International MGM, SkyWest Inc SKYW, Qurate Retail QRTEA, and Wolverine World Wide, Inc WWW. Those departures indicate a shift away from the leisure, retail and fashion sectors.

Among the 21 total positions in Scion's portfolio, his largest new investments include JD.com, Alibaba, Signet Jewelers Ltd. SIG, and New York Community Bancorp.

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Photo: Gonzalo Lanzilotta for Benzinga; Shutterstock

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Posted In: Large CapMid CapNewsHedge FundsHotTechTrading Ideas13Fbank stocksbankse-commercefirst republic bankMichael Burryregional banksScion Capital
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