“It’s like watching a plane crash” – Michael Bury thinks the market has a lot of room to fall.But he finally sees value in these 4 stocks

“It’s like watching a plane crash” – Michael Bury thinks the market has a lot of room to fall.But he finally sees value in these 4 stocks

Michael Bury – the hedge fund manager portrayed by Christian Bale in “The Big Short” – has been actively investing during this period Market downturn.

Burry’s latest 13F filing for the first quarter of 2022 shows a wide range of new investments and some interesting strategic moves. It’s a significant turnaround from the previous quarter, when Burry sold the majority of his stock portfolio and called “mother of all crashes. “

He’s not entirely bullish on the overall market.

“As I said in 2008, it was like watching a plane crash,” Bury wrote in a since-deleted tweet last week. “It hurts, it’s not fun, and I didn’t laugh.”

But those who short the U.S. housing market and win clearly see plenty of opportunity.

Check out his latest moves below.

Facebook (FB) and Alphabet (GOOG)

Burry’s bet on Big Tech is clearly notable.

Technology and growth stocks out of favor nearly half a year. Adding these two stocks to a portfolio for the first time is bucking the trend. Burry’s portfolio now includes 6,500 shares of Google parent Alphabet Inc. and 80,000 shares of Facebook parent Meta Platforms Inc. They are his fourth and sixth largest holdings, respectively.

The move can be seen as a vote of confidence in digital advertising. It could also be an underestimated signal. Both stocks trade at about 20 and 24 times earnings per share.

Booking.com (BKNG)

Travel site Booking.com is now the second-largest holding in Burry’s Scion Asset Management portfolio. He purchased 8,000 shares of the company in the first quarter.

The ratio of the trading price to free cash flow of the reservation stock is 21. This translates to a high free cash flow yield of 4.7%. Booking could be ideal for a global travel rebound as international borders reopen and lockdowns ease.

Apple (AAPL)

Burry bought a lot of tech stocks this quarter, but that doesn’t mean he’s optimistic about the industry as a whole. Hidden in the 13F file is a huge short bet on Apple.

He reported that there were 206,000 put options on Apple stock at the end of the first quarter. The notional value of the bet is approximately $28 million. However, given how option premiums are priced, the actual cost is likely to be much lower.

Surprisingly, however, one of the world’s most famous short sellers is targeting one of the world’s most valuable companies. Apple has lost about 18% of its value so far. Supply chain disruptions in China and weakening consumer purchasing power could affect Apple in the short term.

The stock also trades at a relatively high valuation. Apple stock trades at a price-to-earnings ratio of 24, well above its historical average of 15.

Warner Bros. Discovery (WBD)

Media giant Warner Bros. Discovery is now the third-largest holding in Burry’s portfolio. He added 750,000 shares in the first quarter.

The merger of Discovery and Warner Media created a global content giant. The conglomerate owns the rights to such iconic figures as Batman, Eurosport, HBO and CNN.

The stock fell about 27% on debt and debt concerns The competitive landscape of online streamingHowever, the company expects to generate free cash flow of $3.65 per share by next year, implying an FCF yield of 20% at current market value.

That’s probably why Burry is making such a big bet on this.

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This article is for information only and should not be considered advice. It does not provide any kind of guarantee.