Blog Title: Extreme Investor Network Analysis: Michael Burry’s Bet on Chinese Tech Giants Pays Off
Hedge fund manager Michael Burry, famously known for his successful bet against the housing market in the 2008 financial crisis, is once again making waves in the investment world. This time, Burry’s Scion Asset Management is reaping the rewards of its substantial investment in Chinese tech giants, particularly Alibaba.
According to recent reports, Burry’s portfolio has nearly half of its assets allocated to Chinese stocks, with Alibaba being the largest position at 21%. Other significant holdings include Baidu and JD.com, making up a total of 46% of the portfolio as of June 30.
The recent surge in Chinese stocks can be attributed to the country’s stimulus measures, such as interest-rate cuts and liquidity support for the stock market. China’s proactive approach to revitalizing its economy has led to significant gains in the stock market, with the iShares MSCI China ETF up 18% this week.
For Burry, this means substantial gains in his portfolio, especially with Alibaba’s stock price soaring. HedgeFollow estimates that Burry’s average cost per share of Alibaba is $78.83, with the current price at $105.25, representing a 34% gain. It’s important to note that these figures are based on data up to June 30, and the actual gains could be even higher.
However, Burry isn’t the only hedge fund manager capitalizing on the Chinese stock market boom. Billionaire investor David Tepper has also expressed bullish sentiments towards Chinese stocks, particularly Alibaba. Tepper believes that there is still significant upside potential in these stocks due to their attractive valuations and growth prospects.
At Extreme Investor Network, we believe in providing our readers with insightful analysis and unique perspectives on the latest trends in the finance world. Stay tuned for more updates and expert insights on investment opportunities that could help you achieve your financial goals. Join our community of extreme investors who are always ahead of the curve.