Billionaire Investor Predicting A Huge Market Collapse, Betting On These Stocks

#3 Sprint Corp (NYSE:S)

– Shares Held (as of June 30): 40.28 million
– Total Value of Position (as of June 30): $182.46 million

Like Tempur Sealy, Discovery was also bullish on Sprint Corp (NYSE:S) in the second quarter, as the fund inched up its stake in the company by 6% from March 31 to June 30. Although Sprint is arguably one of the lower-tier telecoms, without the benefit of scale that AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ) realize, or the growth that T-Mobile US Inc (NASDAQ:TMUS) is experiencing, many investors believe that Sprint could eventually merge with another player and unlock substantial value for shareholders. In terms of overall hedge fund ownership, 20 funds in our system were bullish on Sprint Corp (NYSE:S) at the end of June, unchanged quarter-over-quarter.

#2 Broadcom Ltd (NASDAQ:AVGO)

– Shares Held (as of June 30): 1.27 million
– Total Value of Position (as of June 30): $196.64 million

As 2016 has been a very good year for semiconductor stocks, Citrone’s fund rung the cash register when it came to its Broadcom Ltd (NASDAQ:AVGO) position, trimming its stake in it by 29% in the second quarter. Given its large size, there are fewer acquisitions that Broadcom can seek out that will make a big difference in terms of its bottom-line. The stock is also not exactly screaming-cheap anymore, with a forward P/E of over 12.5. Although Broadcom’s stock isn’t likely to fall off a cliff during a correction (given the stock’s beta of around 1), Broadcom won’t be immune to ‘risk off’ sentiment either.

#1 Alibaba Group Holding Ltd (NYSE:BABA)

– Shares Held (as of June 30): 3.89 million
– Total Value of Position (as of June 30): $309.35 million

Discovery Capital also cut its stake in Alibaba Group Holding Ltd (NYSE:BABA) in the second quarter, this time by 35% to just under 3.9 million shares. Theoretically, Alibaba shares could behave idiosyncratically and show some relative strength in the event of a market crash because its stock isn’t part of as many indexes as other major tech companies such as Apple. Alibaba’s economic fortunes also depend on China rather than the United States. Nevertheless, in today’s increasingly algorithmic-dominated world, theory and reality rarely match. Like Amazon, Alibaba does have great long-term promise given its dominant position in e-commerce in China, with its still-growing economy. 69 funds that we track had a long position in Alibaba Group Holding Ltd (NYSE:BABA) as of the most recent 13F reporting period, up by two from the previous one.

Disclosure: None