Posted on: February 14, 2023, 03:40h.
Final up to date on: February 14, 2023, 03:40h.
Scion Asset Administration, the hedge fund run by Michael Burry, bought a stake in MGM Resorts Worldwide (NYSE: MGM) within the fourth quarter.
Burry, who was performed by actor Christian Bale within the film “The Massive Quick,” bought roughly 100,000 shares of the Bellagio operator within the final three months of 2022 — one among seven new additions to Scion’s fairness holdings and the one gaming identify within the group.
Scion’s place in MGM inventory represents simply 0.026% of the gaming firm’s shares excellent, however 7.20% of the hedge fund’s portfolio, in line with Bloomberg knowledge. The stake was valued at $3.35 million on the time of buy, indicating Burry bought the shares round a mean worth of $33.50.
Assuming that’s correct and that Scion nonetheless holds the inventory, the cash supervisor is deeply worthwhile on the place as a result of the gaming fairness closed at $44.22 immediately, extending its year-to-date acquire to 31.87%.
MGM Newest Gaming Inventory Held by Burry
Burry isn’t a stranger to positions in on line casino gaming equities. In 2020, he boldly established stakes in Las Vegas Sands (NYSE: LVS) and Wynn Resorts (NASDAQ: WYNN) at the same time as each operators skilled share worth slumps because of the coronavirus pandemic pinching Las Vegas and Macau operations.
Maybe due partially to these positions or simply due to private emotions, Burry wasn’t shy in voicing his disdain for the lockdowns employed by many states in 2020, overtly bashing Democratic governors, claiming their insurance policies have been damaging the US economic system.
Although Scion might have turned income on its Sands and Wynn trades, the hedge funds wagers on these shares have been untimely as a result of China’s response to COVID-19 was much more draconian that was seen within the US.
As such, it wasn’t till 2022 that shares of these two Macau-centric operators rebound — momentum that’s carrying over into this yr. Burry has been a frequent purchaser for shares with China publicity, doing so in 2020 and within the fourth quarter of final yr, Scion added stakes in on-line retailers Alibaba (NYSE: BABA) and JD.com (NASDAQ: JD).
Thriller Surrounds Burry MGM Stake
Institutional traders similar to Scion alert the Securities and Alternate Fee (SEC) to altered, departed and new holdings by way of 13F filings. Nonetheless, these filings aren’t printed till 45 days after the top of the earlier quarter.
In different phrases, it’s potential the Burry’s hedge fund already bought out of MGM inventory. It’s additionally potential that it added to that place or left it as is for the reason that begin of the yr. That received’t be identified till the agency’s first-quarter 13F is launched, probably someday in Could.
The explanation for the thriller surrounding Scion’s MGM place, and its different stakes for that matter, is easy. On Feb. 1, Burry posted a one-word message on Twitter. That tweet mentioned “promote.”
