Why Michael Burry Is Feeling ‘Greedy’ in a Bear Market


  • Michael Burry admitted that he was feeling “greedy” in a tweet.
  • Still, the fund manager believes that some stocks may fall even further.
  • As of Q2, Burry owned only one company in his 13F portfolio.
Michael Burry - Why Michael Burry Is Feeling ‘Greedy’ in a Bear Market

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Michael Burry is back to his Twitter antics, although this time with a seemingly bullish message. Yesterday, the Scion Asset Management CEO tweeted out:

He followed up that tweet by saying: “Just remember I was feeling greedy on the long side in 2000.”

The positive sentiment from Burry is a welcome shift for the fund manager. Year-to-date, the S&P 500 has declined by about 20%, while many high-growth stocks have declined 70% or more from their peaks. Meanwhile, Scion’s Q2 13F filing showed that the fund had only about $3.3 million invested in the market in one single stock, reflecting Burry’s previously bearish sentiment. That single stock is Geo Group (NYSE:GEO), a real estate investment trust (or REIT) that focuses on prison properties.

Michael Burry Is Feeling “Greedy”

While Burry may be feeling greedy, he also believes that unprofitable companies are primed for further losses. In a now-deleted tweet that was sent out last Friday, he noted that there are 218 companies with primary listings on U.S. exchanges with market capitalizations over $1 billion and annual losses over $100 million. Of those companies, 29 of them have market caps over $10 billion and are worth a combined $655 billion. He emphasized that “ALL the silliness must go.”

Burry also pointed out a statistic that may spell more trouble for the markets. On Oct. 1, he tweeted that “13.48% of stocks closed above their 200-day moving average yesterday. Bottom in 2009 was 1.2%. Bottom in 2020 was 2.8%. Currently at 2007 levels.” The tweet has since been deleted. However, we all know what happened in 2007 and 2008, as stocks plunged lower due to the subprime mortgage collapse. An investor shouldn’t base their decisions on a single statistic, although a similar plunge to 2008 would signal that more pain is on the way.

Yes, Burry may be feeling greedy. But feelings are just feelings unless they are acted upon. Furthermore, the fund manager is known for making spontaneous tweets and then quickly deleting them — at the time of writing, Burry’s Twitter account had only three tweets. Investors will get a chance to see if Burry’s “greedy” tweet lines up with his actual intentions when Scion files its Q3 13F filing.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

Article printed from InvestorPlace Media, https://investorplace.com/2022/10/why-michael-burry-is-feeling-greedy-in-a-bear-market/.

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