Michael Burry’s Scion doubles down on Chinese tech amid market rebound

In a bold move reminiscent of his iconic bets, Michael Burry's Scion Asset Management doubled down on JD.com Inc and Alibaba Group Holding Ltd in Q1 as Chinese equities hit rock bottom. With an 80% boost in JD.com shares and an additional 50,000 shares of Alibaba, Burry's return to Chinese tech investments seems prescient. As the market rebounds on policy interventions and earnings upticks, Burry's calculated risks may yield substantial gains once again..Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here..By Charlotte Yang.Michael Burry's investment firm doubled down on its bets on JD.com Inc and Alibaba Group Holding Ltd. in the first quarter as Chinese equities bottomed out. .___STEADY_PAYWALL___.JD.com was Scion Asset Management's top holding after the firm boosted its stake in the e-commerce operator by 80% during the period, according to the most recent 13F filing. Alibaba was its second-biggest position with total value at around $9 million, after the firm added a further 50,000 shares..Read more: 🔒 Michael Burry defies market trends with contrarian bets on Chinese tech giants Alibaba and JD.com.Burry, made famous by the book The Big Short, has been making a return to Chinese tech shares after exiting them at one point in 2023. The wagers appear to be paying off, as Chinese policymakers' efforts to stem a rout and signs of improvement in earnings spur a rebound in the troubled market. JD.com's US-listed shares have climbed more than 16% this year while Alibaba's have increased about 4.5%. .Baidu Inc.'s American Depositary Receipts, which Burry added a small $4.2 million stake, are still down 7% this year. .Global investors have been making a cautious return to the Chinese stock market as cheap valuations and Beijing's policy support allowed a number of equity benchmarks to roar into bull markets. A sustainable growth in earnings is seen as crucial for the rebound to continue. Tencent Holdings Ltd. beat earnings estimates while Alibaba reported weaker-than-expected profitability. .Burry, who rose to fame predicting the 2008 US housing crash, has been moving in and out of his China tech bets over the past years. He snapped up shares of New York-listed Alibaba and JD.com at the end of 2022 as China was emerging from the pandemic. He ended up closing out his positions in the second quarter of 2023, only to reopen them months later..Read also:.🔒 Chinese tech bulls load up but doubts remain – with insight from The Wall Street Journal🔒 Premium: Beijing tries to repair Xi's shared prosperity assault on Chinese tech stocks🔒 FT – Naspers/Prosus alert: Are Chinese stocks a value trade or a value trap?.© 2024 Bloomberg L.P.

Michael Burry’s Scion doubles down on Chinese tech amid market rebound

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