Michael Burry, the manager at Scion Asset Management hedge fund, acquired a stake in MGM Resorts International (NYSE: MGM) during the fourth quarter of 2022. This comes after the investor was portrayed by actor Christian Bale in the movie “The Big Short.”
Approximately 100,000 shares of the Bellagio operator were purchased by Burry over the last three months, representing the only gaming name in the seven new additions to Scion’s equity holdings. The 0.026% stake in MGM’s total shares outstanding was valued at $3.35 million, indicating that Burry purchased the shares at an average price of $33.50.
As of today, MGM’s stock has risen to $44.22, increasing by 31.87% since the beginning of the year. This has proven to be a profitable position for Scion.
In 2020, Burry created stakes in Las Vegas Sands (NYSE: LVS) and Wynn Resorts (NASDAQ: WYNN), despite their share prices dropping due to the coronavirus pandemic impacting Las Vegas and Macau operations. His criticism of the Democratic governors’ lockdown policies caused a stir.
Scion may have gained profits from their Sands and Wynn trades, but their wagers came too early as China’s COVID-19 response was more severe than expected. It wasn’t until 2022 that shares of these two Macau-based operators recovered, and this momentum continues into the present year.
Burry has also been known to buy stocks with exposure to China, doing so in 2020 and in the fourth quarter of 2021. During this time, Scion added stakes in online retailers Alibaba (NYSE: BABA) and JD.com (NASDAQ: JD).
Investors inform the Securities and Exchange Commission (SEC) of their altered, departed and new holdings through 13F filings. However, these filings are not released to the public until 45 days after the end of the previous quarter. Therefore, it is unknown whether Scion has sold out of MGM stock, increased their position, or left it as is.
This uncertainty arises from a tweet posted by Burry on February 1st, which simply said “sell.”
Michael Burry, the manager of Scion Asset Management’s hedge fund, acquired a stake in MGM Resorts International (NYSE: MGM) during the fourth quarter of 2022. Subsequent to Burry