Michael Burry's Portfolio (2024 Q3)
2min read 
In the third quarter of 2024, Michael Burry made significant adjustments to his investment portfolio, particularly with notable increases in the Chinese technology sector. He increased his holdings in ALIBABA GROUP HOLDING-SP ADR and JD.COM INC-ADR, indicating strong confidence in the Chinese e-commerce and technology industries. Additionally, he liquidated his positions in HUDSON PACIFIC PROPERTIES and BIOATLA INC, suggesting a strategic shift away from the real estate and biotechnology sectors.
Analysis of Increased Holdings
1. The decision to increase stakes in Alibaba and JD.com clearly reflects confidence in the sustained growth of the Chinese e-commerce and technology sectors. China's e-commerce market is projected to see significant growth by 2025, supporting Burry's decision to increase his holdings.
2. Alibaba and JD.com, as market leaders, possess strong market positions and brand influence, providing Burry with stable growth expectations and profit potential.
3. Increasing these holdings reflects Burry's high regard for these companies' strong operational capabilities and future growth potential, as well as recognition of China's role as a global e-commerce hub.
Analysis of Decreased Holdings
1. The reduction in RealReal holdings may be due to cautious views on the company's long-term profitability and market competitiveness, despite the active luxury resale market.
2. The reduction in American Coastal Insurance might be due to current uncertainties in the insurance industry or dissatisfaction with the company's specific financial performance or risk management strategies.
Analysis of Liquidated Positions
1. The liquidation of Hudson Pacific Properties suggests a pessimistic outlook on the real estate market, particularly commercial properties, considering the sector's performance and market volatility.
2. The liquidation of BioAtla Inc is likely due to the high volatility in the biotechnology sector and specific challenges faced by the company, such as market conditions and patent disputes, which may impact its long-term performance.
Industry Analysis
1. The significant increase in Chinese tech companies, especially e-commerce giants, indicates Burry's optimistic expectations for the future development of China's tech industry. This sector is expected to continue growing, particularly amid intensified global tech competition.
Country Preferences
1. By significantly increasing investments in Alibaba and JD.com, Burry has heightened his exposure to the Chinese market, reflecting confidence in China's economic stability and growth potential, especially in the tech and e-commerce sectors.
Summary
Michael Burry's latest portfolio adjustments demonstrate his strong confidence in the Chinese tech industry, particularly in the e-commerce sector. His reductions and liquidations reflect evaluations of potential risks in certain industries or companies and a repositioning of market outlook.
Opportunities
1. Increasing holdings in Alibaba and JD.com highlights the immense growth potential of China's e-commerce industry, offering investors opportunities to participate in the rapid development of the Chinese market.
2. The expansion and innovation within the e-commerce and technology sectors globally provide investors with opportunities to achieve stable returns through leading companies.
Risks
1. The reduction in RealReal and American Coastal Insurance may indicate current market challenges and business risks faced by the luxury e-commerce and insurance industries.
2. The liquidation of Hudson Pacific Properties and BioAtla Inc may point to instability in the real estate and biotechnology sectors and specific adverse factors affecting these companies, which investors should be wary of when considering these industries.