Michael Burry Is Betting on Bank Stocks FRCB, WAL, PACW, NYCB


  • Michael Burry purchased new stakes in bank stocks such as First Republic Bank (FRCB) and PacWest Bancorp (PACW) during Q1.
  • His fund, Scion Asset Management, has an average holding period of just 0.67 quarters according to Whale Wisdom.
  • As a result, its possible that the storied investor could have already adjusted his bank stocks exposure.
Bank stocks - Michael Burry Is Betting on Bank Stocks FRCB, WAL, PACW, NYCB

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Today is the deadline for institutional investors to file their quarterly Form 13F for the period ending March 31. With that in mind, investors are now able to take a look at Michael Burry’s portfolio.

Burry’s fund, Scion Asset Management, took a particular liking to bank stocks during Q1. His 13F portfolio includes new stakes in First Republic Bank (OTCMKTS:FRCB), New York Community Bancorp (NYSE:NYCB), Western Alliance Bancorporation (NYSE:WAL), Capital One (NYSE:COF) and PacWest Bancorp (NASDAQ:PACW). This comes amid fears within regional banks in light of rising rates, an increase in outflows, and attractive money market fund and treasury security returns found elsewhere.

Michael Burry Bets Big on Bank Stocks FRCB, WAL, PACW, NYCB

Burry is best known for predicting the 2008 housing market crash, making $700 million for investors and $100 million for himself. Still, retail investors shouldn’t follow along with his every move. According to Whale Wisdom, Scion has an average 13F holding period of just 0.67 quarters for stocks in his portfolio. Scion holds stocks in its top 10 positions for an average of 0.3 quarters. NYCB and COF fall within Scion’s top 10 positions.

13F positions are reported with a lag. Therefore, it’s probable that Burry’s portfolio today looks very different than how it looked on March 31.

However, Burry’s interest in banking stocks is still quite notable given the volatile industry context. If he still owns the shares reported in his 13F update, investors could see it as a stamp of approval for the U.S. banking system. In addition, it’s not clear when he purchased his stake in FRCB during Q1. The stock formerly traded as FRC before moving to the over-the-counter (OTC) market.

However, on Jan. 31, the fund manager posted an ominous tweet in the form of a single word: “Sell.” Then, on March 30, Burry seemingly switched up his stance, and tweeted, “I was wrong to say sell.” Burry has apparently deleted both tweets since then.

As evidenced by his low 13F average holding period, Burry is not yet the best institutional investor to track. Investors seeking to take action from institutions should find the ones with longer holdings periods.

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/2023/05/michael-burry-is-betting-on-bank-stocks-frcb-wal-pacw-nycb/.

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