Michael Burry Stock Portfolio: 10 Stocks He Sold

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In this article, we discuss the 10 stocks to sell according to Michael Burry. If you want to read about some stocks to sell per Burry, go directly to Michael Burry Stock Portfolio: 5 Stocks He Sold.

There are few hedge fund managers on Wall Street who command as much attention during an economic slowdown as Michael Burry of Scion Asset Management, the renowned investor of The Big Short fame who rose to stardom after accurately predicting the financial crisis of 2008 and making hundreds of millions from shorting the housing market. Burry, who manages a 13F stock portfolio worth just $41 million at the end of the third quarter of 2022, has repeatedly warned investors in the past few months that the stock market is about to crash. 

Burry held stakes in top stocks like Alphabet Inc. (NASDAQ:GOOG), Warner Bros. Discovery, Inc. (NASDAQ:WBD), and Booking Holdings Inc. (NASDAQ:BKNG) in the past year or so but sold off these positions entirely in the second quarter of 2022, trying to shield his fund from the impact of the slowing economy. Burry recently tweeted that the market was mimicking the patterns seen in 2007. He also teased his followers on Twitter by saying that they had no idea how many shorts bets he had on this collapse. 

The stocks that Burry sold off in the past few months have been severely impacted by the macro slowing of the economy. Of the 10 stocks that he sold off in the second and third quarter of 2022, seven have witnessed their share prices decline by more than 10% in the past year. Of the three remaining stocks, one is down in the past six months and the other one year-to-date. Only one of these stocks, Nexstar Media Group, Inc. (NASDAQ:NXST), is trading up by more than 20% in the past twelve months. 

Our Methodology

The companies listed below were picked from the investment portfolio of Scion Asset Management at the end of the third quarter of 2022. The stocks which the hedge fund sold off completely in the past few months were selected. Data from around 900 elite hedge funds tracked by Insider Monkey in the third quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm. It is important to clarify that Burry, in the past few months, has repeatedly warned of a looming market crash, advising investors to prepare for a crisis unlike anything seen before. He sold off his entire portfolio in the second quarter of 2022 to shield his fund from the impact of such a crash. 

Michael Burry Stock Portfolio: 10 Stocks He Sold
Michael Burry Stock Portfolio: 10 Stocks He Sold

Michael Burry of Scion Asset Management

Michael Burry Stock Portfolio: Stocks He Sold

10. Sportsman's Warehouse Holdings, Inc. (NASDAQ:SPWH)

Number of Hedge Fund Holders: 22   

 

Decline in Share Price Over Past Year: 10%  

Sportsman's Warehouse Holdings, Inc. (NASDAQ:SPWH) operates as an outdoor sporting goods retailer in the United States. On September 1, Sportsman’s Warehouse Holdings posted earnings for the second quarter of 2022, reporting earnings per share of $0.36, beating market estimates by $0.10. The revenue over the period was $351 million, down 3.0% compared to the revenue over the same period last year and beating market estimates by $12.73 million. Burry bought a stake in the firm in the first quarter of 2022 but sold it during the second quarter. 

On September 26, B. Riley analyst Eric Wold maintained a Buy rating on Sportsman's Warehouse Holdings, Inc. (NASDAQ:SPWH) stock and raised the price target to $16 from $14, noting that management plans to accelerate store growth in the coming years with the flexible store format.

At the end of the third quarter of 2022, 22 hedge funds in the database of Insider Monkey held stakes worth $105.9 million in Sportsman's Warehouse Holdings, Inc. (NASDAQ:SPWH), compared to 20 in the previous quarter worth $108.8 million.

Just like Alphabet Inc. (NASDAQ:GOOG), Warner Bros. Discovery, Inc. (NASDAQ:WBD), and Booking Holdings Inc. (NASDAQ:BKNG), Sportsman's Warehouse Holdings, Inc. (NASDAQ:SPWH) is one of the stocks feeling the heat of an economic slowdown. 

In its Q1 2022 investor letter, Merion Road Capital, an asset management firm, highlighted a few stocks and Sportsman's Warehouse Holdings, Inc. (NASDAQ:SPWH) was one of them. Here is what the fund said:

“During the quarter I added to Sportsman's Warehouse Holdings, Inc. (NASDAQ:SPWH). SPWH is an outdoor sporting goods retailer with about half of its revenue coming from hunting & shooting products (guns, ammo). I initiated our position back in December following their failed merger with Great Outdoors on the grounds of antitrust concerns. It appeared that the stock was being sold off indiscriminately by merger arbitrageurs and valuation seemed attractive, particularly after adjusting for the receipt of a $55mm termination payment and unwind of excess inventory.

While the dust has largely settled from an investor base perspective, SPWH remains attractively priced with a few upcoming catalysts. Fundamentally the company is well-positioned. Following the tragic Parkland school shooting two large competitors to SPWH, Dicks Sporting Goods and Walmart decided to exit the category; their absence makes the competitive landscape for SPWH a lot more favorable than in prior years. Furthermore, it is no surprise that gun and ammo sales during covid experienced tremendous growth. Unlike prior cycles, however, this wave saw an increase in new gun buyers rather than purchases by existing owners. SPWH estimates that over the past 18 months the industry created 12mm new firearm owners; using a prior base of 100mm, this implies an increase to their addressable market of 12%. The company is executing many other internal initiatives including store expansion, omnichannel growth (ecomm up to 15% of revenues), loyalty programs (at 3mm members) and new cobranded credit cards…(read more)

9. Stellantis N.V. (NYSE:STLA)

Number of Hedge Fund Holders: 25    

Decline in Share Price Over Past Year: 12%  

Stellantis N.V. (NYSE:STLA) engages in the design, engineering, manufacturing, distribution, and sale of automobiles and parts. On October 26, Magna’s said that its 48-volt hybrid transmission has made its debut in Stellantis’ Jeep Renegade, Fiat 500 X, Compass e Hybrid and Tipo models as part of a multi-program agreement. This 48-volt hybrid transmission is produced at Magna’s Slovakia facility. Burry had held a stake in the firm worth nearly 600,000 shares during the first quarter but sold it off completely between March and June. 

On October 20, Nomura analyst Anindya Das upgraded Stellantis N.V. (NYSE:STLA) stock to Buy from Neutral with a price target of EUR 19.80, up from EUR 15.70, noting the better-than-expected year-to-date net pricing strength in company’s major markets of North America and Europe.

At the end of the third quarter of 2022, 25 hedge funds in the database of Insider Monkey held stakes worth $905.5 million in Stellantis N.V. (NYSE:STLA), compared to 25 in the preceding quarter worth $714.6 million.

8. Nexstar Media Group, Inc. (NASDAQ:NXST)

Number of Hedge Fund Holders: 32 

Rise in Share Price Over Past Year: 23%  

Nexstar Media Group, Inc. (NASDAQ:NXST) is a television broadcasting and digital media company. On October 3, Nexstar Media Group said that it has closed on its acquisition of the CW network. Nexstar Media sealed its deal for 75% ownership interest from the co-owners of Network, Warner Bros. Discovery and Paramount Global. Burry sold off his stake in the firm completely during the second quarter of 2022 after holding it for a brief period in the first quarter. 

On September 6, Rosenblatt analyst Barton Crockett upgraded Nexstar Media Group, Inc. (NASDAQ:NXST) stock to Buy from Neutral with a price target of $246, up from $181, noting that a mix-driven ad resilience and new revenues from next-gen transmission technology can support growth for Nexstar.

Among the hedge funds being tracked by Insider Monkey, Wisconsin-based investment firm Cardinal Capital is a leading shareholder in Nexstar Media Group, Inc. (NASDAQ:NXST) with 965,922 shares worth more than $161 million.

In its Q1 2022 investor letter, Richie Capital Group, an asset management firm, highlighted a few stocks and Nexstar Media Group, Inc. (NASDAQ:NXST) was one of them. Here is what the fund said:

“Nexstar Media Group (NXST up 24.8%) – The television broadcasting and digital media company surged during the quarter after presenting at an investor conference where management pointed to a strong 2022 for both political advertising and retransmission. They have exposure to more than 80% of markets with competitive mid-term political races. NXST is developing new ad categories such as sports betting and they are focused on expanding digital ad revenue and providing digital solutions to local advertisers. Auto advertising will return in the fall as auto dealerships re-enter the market to sell their replenished inventory.”

7. Ovintiv Inc. (NYSE:OVV)

Number of Hedge Fund Holders: 47  

Decline in Share Price Over Past Week: 10%  

Ovintiv Inc. (NYSE:OVV) engages in the exploration, development, production, and marketing of natural gas, oil, and natural gas liquids. On September 28, Ovintiv Inc. said that it has received regulatory approvals for the renewals of its shares’ buyback program. Burry held the stock for brief period during the second quarter of 2021 and the first quarter of 2022. He sold off the stake completely during the second quarter of 2022. 

On October 19, Jefferies analyst Lloyd Byrne initiated coverage of Ovintiv Inc. (NYSE:OVV) stock with a Buy rating and $75 price target, noting that the current macro slowdown is likely to incrementally gain focus within the exploration group.

Among the hedge funds being tracked by Insider Monkey, London-based investment firm Marshall Wace LLP is a leading shareholder in Ovintiv Inc. (NYSE:OVV) with 4 million shares worth more than $187.6 million. 

In its Q2 2022 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and Ovintiv Inc. (NYSE:OVV) was one of them. Here is what the fund said:

“Oil and gas exploration and production company Ovintiv Inc. (NYSE:OVV) fell as oil prices faded late in the quarter due to aggressive Fed rate hikes and growing credit fears in emerging markets, a source of demand growth for oil. Although oil and fuel product inventories remain scarce, the Fed has been so aggressive with rhetoric and tightening that the dollar rose sharply and investor sentiment shifted toward anticipating a recession. Ovintiv is a self-help improvement story as it lowers debt levels through cash generation and asset sales while detailing plans to buy back shares more aggressively and pay a higher dividend.”

6. Global Payments Inc. (NYSE:GPN)

Number of Hedge Fund Holders: 59   

 

Decline in Share Price Over Past Year: 22%  

Global Payments Inc. (NYSE:GPN) provides payment technology and software solutions for cards, electronic, check, and digital-based payments. On August 1, EVO Payments and Global Payments announced that Global Payments will acquire EVO in an all-cash transaction for $34 per share in cash indicating a $4 billion enterprise value for EVO. The purchase price represents a premium of 24% to EVO’s last closing price of July 29. The firm was part of a group of firms Burry sold off completely during the second quarter of 2022. 

On November 1, BMO Capital analyst James Fotheringham maintained an Outperform rating on Global Payments Inc. (NYSE:GPN) stock and lowered the price target to $224 from $232, noting that the company reported in-line third quarter results.

Among the hedge funds being tracked by Insider Monkey, Bermuda-based investment firm Orbis Investment Management is a leading shareholder in Global Payments Inc. (NYSE:GPN) with 5.8 million shares worth more than $620.8 million.

In addition to Alphabet Inc. (NASDAQ:GOOG), Warner Bros. Discovery, Inc. (NASDAQ:WBD), and Booking Holdings Inc. (NASDAQ:BKNG), Global Payments Inc. (NYSE:GPN) is one of the stocks under pressure from rising interest rates. 

 

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Disclosure. None. Michael Burry Stock Portfolio: 10 Stocks He Sold is originally published on Insider Monkey.