Postcards: What Burry... Bought

It's 13D season, so we're looking for surprises from hedge fund manager and crisis prognosticator Michael Burry. ͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­͏   ­ Forwarded this email? [Subscribe here]() for more You are a free subscriber to Postcards from the Florida Republic. To upgrade to paid and receive the daily Republic Risk Letter, [subscribe here](. --------------------------------------------------------------- [Postcards: What Burry... Bought]( It's 13D season, so we're looking for surprises from hedge fund manager and crisis prognosticator Michael Burry. [Garrett {NAME}]( May 16   [READ IN APP](   Market Update: Seasonality is strong, and liquidity is strong. People keep asking how the markets continue to hold up, and we repeatedly say the same thing. Global liquidity (Howell’s reading is rising), geopolitical instability isn’t on the front page, and the magic monetary and fiscal policies are pumping away. It won’t end well, but the music is still playing for now. Michael Burry-gator - 2008 Dear Fellow Expat: As earnings season fades… we now get to find out what hedge fund managers bought ahead of the second quarter. That’s right. It’s 13D season… so everyone can run and chase stocks that hedge fund managers bought 45 days ago. But these 13D filings can be a gold mine of intelligence for smart investors. They tell us what our financial titans are doing with their money. The SEC requires that any party that owns more than 5 percent of a company file a document reporting this. It’s a good rule because it brings transparency to the market. The 13D is a calling card for hedge fund magnates and corporate raiders. They are bold capitalists who see opportunity, whereas others see only numbers. They can act as breadcrumbs leading us to the temples of high finance. People make fortunes and build empires there. Sometimes, great falls from grace occur. Now, there’s one man I always follow this time of year. That’s Michael Burry. Burry famously bet against the housing market before the 2008 crash. He has a knack for seeing what others overlook. He maintains a contrarian approach. So, when he files 13D, it's not just paperwork—it's a proclamation. Burry has a knack for deep dives into obscure financial data. He has made a career out of going against the crowd. His 13D filings are signals that often herald significant shifts and opportunities. When Burry takes a large position in a company, it's a clarion call to pay attention. Burry has a record of finding undervalued assets and spotting crises before they hit the mainstream, making his filings a must-watch for serious investors. So, what did his filings show this week? Burry Buy No. 1: Sprott Physical Gold Trust (Avg. Price $17.30) - $7.64 million Ticker PHYS - Well, this one speaks to inflation like no other. Burry turned away from his market crash prediction and is now on the monetary inflation train. The Sprott Physical Gold Trust is a pile of gold. What was brilliant about this trade, though, wasn’t just that PHYS offers investors the chance to take delivery of gold if they buy enough of it… but he bought the gold at a discount to the fund’s net asset value. So, he either collected a few bars of gold - and sold them, or he bought the PHYS at a discount and enjoyed gains while the NAV rose closer to its full value… all while gold prices rose. Burry Buy No. 2: BP Plc (Avg. Price - $37.68) - $6.59 million Ticker BP - As noted below, many energy companies increasingly benefit from the Green Transition. It’s become popular law because there are plenty of goodies for anyone making green diesel or engaging in carbon capture. BP is interesting because of its 5% yield, reasonable valuation (a foreign company), and history and future of buybacks. Burry Buy No. 3: Baidu (Avg. Price - 105.28) - $4.21 million Ticker BIDU - I named BIDU one of the top stocks to trade this year based on momentum and moves by the People’s Bank of China. The stock is flat, but the trading swings have been wild. Burry is likely betting on a significant expansion of monetary policy operations in China to prop up the system. This stock was on my radar on our Model Portfolio metrics at the start of the year. I passed. But it’s back on my list again heading into the second quarter. Burry Buy No. 4: First Solar (Avg. Price - 168.80) - $5.06 million) Ticker - FSLR - I won’t lie. I think this stock will fall off a cliff if Donald Trump wins, as the company relies VERY heavily on subsidies to prop up its stock. It’s been an excellent few months for FSLR since the start of the quarter. So, what does Burry see? The Inflation Reduction Act (the Green New Deal by a different name) may become too popular to eliminate regardless of who wins in 2024. With plenty of states getting stimulus money, there becomes a newly entrenched bureaucracy pumping untold trillions over the next decade into the system - all while taking over the energy sector. This is Obamacare 2.0. It is a beast that may never die. Burry Buy No. 5: The Cigna Group (Avg. Price - $363.19) - $7.26 Million Ticker - CI: I’d like to think that Mr. Burry stumbled upon my blog one day. As I’ve noted, Cigna has benefited from the government takeover (or heavy hand in policy to the point there’s little innovation and more bureaucracy) of the healthcare system. We subsidize healthcare unlike any other sector, which is why Cigna stock is up more than 841% since the passage of Obamacare. That dwarfs the 345% by the S&P 500 since its passage. With monetary inflation on a massive run, it’s hard to see how healthcare costs don’t keep rising, and with it, Cigna’s stock price. This is a very dirty secret. The more we subsidize something, the higher the prices, boosting profits. Healthcare companies don’t fight the government. They work together. That is one of the critical reasons CI is a great way to manage the spiraling deficit while protecting ourselves against runaway inflation and higher costs. Once again, it’s always important to keep an eye on Burry. He’s tapped into the Green Transition, Gold’s play against monetary inflation, an expected recovery in China, and the never-ending spending spree in healthcare. Those may be the best place to be when playing the monetary game we regularly discuss. Stay positive, Garrett {NAME} Disclaimer Nothing in this email should be considered personalized financial advice. While we may answer your general customer questions, we are not licensed under securities laws to guide your investment situation. Do not consider any communication between you and Florida Republic employees as financial advice. Under company rules, editors and writers cannot recommend their positions. The communication in this letter is for information and educational purposes unless otherwise strictly worded as a recommendation. Model portfolios are tracked to showcase a variety of academic, fundamental, and technical tools, and insight is provided to help readers gain knowledge and experience. Readers should not trade if they cannot handle a loss and should not trade more than they can afford to lose. There are large amounts of risk in the equity markets. Consider consulting with a professional before making decisions with your money.   [Like]( [Comment]( [Restack](   © 2024 Garrett {NAME} 548 Market Street PMB 72296, San Francisco, CA 94104 [Unsubscribe]() [Get the app]( writing]()