Michael Burley, known for his role in the “Big Short,” has invested in Chinese tech titans Alibaba and JD.com. According to regulatory filings, these two stocks make up about 20% of Scion Asset Management’s portfolio. By the end of March, Scion held $10.2 million worth of Alibaba shares and $11 million worth of JD.com shares. The hedge fund’s holdings in both companies increased from the end of December. Other hedge funds collectively sold 4 million JD.com shares in Q1 2023, whereas Burley is known for being a contrarian investor.
Burley made headlines in January when he tweeted the word “sell.” The comment was taken as a warning to investors not to be fooled by a stock price rebound and buy into a market rally. However, Burley negated his comment in March with a tweet, stating that he was “wrong to say sell.” Both tweets have since been deleted. Monday’s 13F disclosure also revealed Burley’s investment in smaller banks such as First Republic and Pacific Western during the banking crisis.
The “Big Short” investor initially gained fame for accurately predicting and profiting from the 2008 US housing market crash. His notable bets on the housing bubble were featured in the book and movie “The Big Short.” On Monday, Alibaba shares closed at $88.34 a share, up 3.5% on the NYSE, while JD.com closed at $37.67 per unit, up almost 7% on Nasdaq. After-hours trading saw both stocks remain flat. Scion Asset Management did not respond to a request for comment.