Investors who know about the 2008 crisis do not give up on two stocks
Fund manager Michael Burry, who became famous worldwide with his Big Short book and movie, doubled his positions in JD.com and Alibaba Group in the first quarter, despite Chinese stocks hitting rock bottom.
Burry, who rose to fame by predicting the US housing crash in 2008, isn’t giving up on Chinese tech stocks.
Michael Burry’s investment firm doubled its positions in JD.com Inc and Alibaba Group Holding Ltd. in the first quarter as Chinese stocks tanked.
JD.com became the largest holding in Scion Asset Management’s portfolio after the firm increased its stake in the e-commerce operator by 80 percent during the period. Alibaba became its second largest position with a total value of approximately $9 million after the company added 50 thousand more shares.
JD.com’s U.S.-traded shares are up more than 16 percent this year, while Alibaba’s shares are up about 4.5 percent.
Global investors are making a cautious return to the China Stock Exchange as cheap valuations and policy support from Beijing allow a number of stock indicators to enter bull markets. Sustained growth in earnings is vital for the recovery to continue.
Burry had publicly purchased shares of Alibaba and JD.com in New York at the end of 2022 as China emerged from the epidemic. Burry closed his positions in the second quarter of 2023 and reopened them months later.