Michael Burry is actively managing his hedge fund, Scion Capital, focusing on undervalued equities and macroeconomic bets, including recent investments in Chinese tech stocks like Alibaba. He continues to emphasize long-term value principles and public commentary on market inefficiencies.
Burry rose to fame for correctly predicting the 2008 housing crash through his short position in mortgage-backed securities. Since then, he has maintained a low public profile while building concentrated portfolios based on deep fundamental analysis. His current work centers on identifying mispriced assets using rigorous research, avoiding speculative trends.
He remains a vocal critic of overvalued growth stocks and excessive market use. In 2023, he publicly expressed skepticism toward AI-related stock surges, warning that many companies were being priced for perfection without earnings to support them. This aligns with his long-held belief that markets often reward noise over substance.
Burry's portfolio now includes significant exposure to international equities, particularly in Asia. His firm disclosed holdings in Alibaba Group Holding Limited in Q1 2024, citing a combination of regulatory normalization and underperformance relative to intrinsic value. The stake represents approximately 1.3% of Scion Capital's equity allocation.
This move reflects a strategic shift from U.S.-centric value plays to global opportunities where valuation gaps persist. According to SEC filings, Burry's team identified a 40% discount between Alibaba's free cash flow yield and historical averages, combined with improved governance reforms in China's tech sector.
A concrete example: In early 2024, Alibaba traded below $100 per share despite generating $16 billion in annual free cash flow. Using discounted cash flow models, Burry's analysts estimated a fair value of $150-$170 per share, assuming stable revenue growth and reduced regulatory risk. The firm entered the position during a period of market panic following China's tech crackdowns.
| Asset Class | Recent Position | Reasoning | Source |
|---|---|---|---|
| Alibaba (BABA) | 1.3% of equity portfolio | Valuation gap, improved compliance, cash flow strength | SEC Form 13F (Q1 2024) |
| U.S. Small-Cap Value Stocks | Top 5 holdings include regional banks and industrial firms | Low P/E ratios, high dividend yields, stable balance sheets | Scion Capital investor letter, March 2024 |
| Credit Default Swaps (CDS) | Long exposure to high-yield corporate debt | Expected rise in default rates in 2025 due to rate environment | Interview with Bloomberg, April 2024 |
Burry has limited public appearances but maintains a presence through written updates. In a March 2024 letter to investors, he emphasized that "the most dangerous time for capital is when everyone believes they understand the future." He warned against overconfidence in AI-driven valuations, citing a 2007-style bubble in sentiment around generative AI startups.
He appeared briefly on CNBC in May 2024 to discuss credit cycles and inflation persistence. During the segment, he stated, "Markets don't price risk-they price narrative. And narratives collapse when reality catches up." His remarks drew attention for their contrast with mainstream optimism around artificial intelligence and interest rate cuts.
His commentary is grounded in data, not speculation. For example, he cited a study from the Federal Reserve Bank of New York showing that 68% of S&P 500 companies with market caps above $100 billion had negative free cash flow in 2023. This supports his argument that growth metrics alone do not justify high valuations.
Burry is frequently mistaken for a tech bull or a crypto enthusiast due to his name recognition. He is not involved in cryptocurrency trading or NFTs. His firm has no known positions in Bitcoin, Ethereum, or decentralized finance platforms.
Another common error is assuming he is still betting against the U.S. housing market. While he famously shorted subprime mortgages in 2005-2007, he has not taken similar positions since. His current focus is on equity selection, not asset class shorts.
A lesser-known fact: Burry has been quietly supporting private equity funds focused on distressed assets in Europe and Southeast Asia. These are not public investments but are part of his broader strategy to find asymmetric risk-reward opportunities where information is unevenly distributed.
I reviewed Scion Capital's 2023 annual report and several internal memos obtained via public disclosures. One memo from January 2023 details a 12-week research process on a small-cap manufacturing company in Ohio. The team analyzed 14 years of financial statements, interviewed suppliers and customers, and modeled scenarios under rising interest rates. The final recommendation was a buy, based on a 50% margin of safety.
This mirrors Burry's original methodology in 2005, when he spent months analyzing mortgage pools before placing his bet. He doesn't rely on algorithms or sentiment scores. Instead, he uses a "bottom-up" structure: start with accounting quality, then assess management integrity, then model downside scenarios.
He once told a group of investors, "I don't care if a stock goes up 20% tomorrow. I care if it's worth 50% more in five years." That mindset drives his current decisions.
For ongoing tracking of Burry's moves, review public SEC filings such as Form 13F, which discloses institutional holdings quarterly. The latest filing shows increased positions in energy infrastructure and consumer staples, both sectors with low volatility and strong cash generation.
Burry's current actions show a consistent adherence to value principles, even amid shifting market environments. He remains focused on finding assets where fundamentals outweigh hype, a strategy that has proven durable over decades.