In this article, we will explore the 9 Stocks Big Short’s Michael Burry Is Betting On.
Michael Burry’s investments are always closely followed by investors. Known for predicting the 2008 housing collapse and contrarian bets, Burry’s Scion Management stopped publicly reporting its holdings after deregistering with the SEC. Since then, the public has been closely following his social media posts to track his holdings, and there are some pretty interesting insights into the stocks he is currently backing.
We already know Burry has been betting against the AI trade, yet one of his purchases so far this year has been a big tech company, that too a software one. He has been bearish on the industry otherwise, but is aware of the opportunity this brings:
I do not believe the technical pressures brought on by the private credit/software debt issues are big enough to affect these stocks for much longer.
He continues to bet against Nvidia even as the broader semiconductor industry rallies, delivering incredible returns. In response to comments from hedge fund billionaire Bill Ackman on one of Burry’s holdings, he had this to say:
Cannot emphasize enough how rare this is in this market.
This came in response to market discounts resulting from the war in Iran. In short, when it comes to Michael Burry, you’re looking at the rare opportunities that everyone else seems to be missing. This is exactly why, since he stopped reporting his holdings, we decided to dig them out and create our list of 9 stocks that Big Short’s Michael Burry is betting on.
Michael Burry of Scion Asset Management
Our Methodology
To come up with the list of 9 stocks that Big Short’s Michael Burry is betting on, we first searched through the financial media for reports on the stocks that Michael Burry has been buying this year. While doing so, we also looked at the number of hedge funds holding these stocks in their portfolios to gauge how many other funds are bullish on them. These companies have also reported recent investor-worthy news and are listed in ascending order of the number of hedge funds holding them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Note: All share price data in the article is as per market close on May 7.
9. Federal Home Loan Mortgage Corporation (OTCMKTS:FMCC)
Number of Hedge Fund Holders: 1
Michael Burry is betting on Federal Home Loan Mortgage Corporation (OTCMKTS:FMCC), to which he has been adding this year as well. The stock has also gained attention lately due to hedge fund manager Bill Ackman’s interest. Ackman believes FMCC is one of the most undervalued quality stocks in the market right now, primarily due to the Iran war. He sees the war as a short-term issue, making the stock attractive at these depressed levels. Moreover, he has been buying the stock since early 2025.
On April 25, BTIG analyst Eric Hagen had set a target price of $20 on Federal Home Loan Mortgage Corp (OTCMKTS:FMCC) and maintained a Buy rating on the stock. On a more bearish note, Keefe Bruyette lowered its price target from $9 to $8.5, which is quite close to where the stock is currently trading. The firm believes FMCC will report higher profits for the first quarter, as its core business of guaranteed home loans is going exceptionally well. The analyst does not see any significant probability of privatization happening before the US mid-term elections.
Federal Home Loan Mortgage Corporation (OTCMKTS:FMCC) provides mortgage market services in the United States secondary mortgage sector. The company operates through the Single-Family and Multifamily segments. It securitizes, purchases, and guarantees mortgage loans while also managing mortgage-related credit, investment portfolios, and market risks.
8. JD.com Inc. (NASDAQ:JD)
Number of Hedge Fund Holders: 51
On May 5, an SPDB analyst set a target price of HK$135 on JD.com Inc. (NASDAQ:JD) and maintained a Buy rating on the stock. This reflects a 14.5% upside from here on. Michael Burry usually backs stocks for much more upside than what the analyst suggests, and he often goes big. That is exactly what he is doing with JD, as he reported on April 10:
I bought shares in JD.com and Alibaba today. JD is a significant add, and Alibaba is a new position, a little over 6%. JD is a bit more than that.
Burry has called the recent price action an attractive entry point, but the upcoming earnings on May 12 could completely change that if things go wrong. The company is expected to report an equivalent of $519 million in net profit during the quarter. The revenue is expected to be around $45.6 billion. Analysts expect the company to continue narrowing its losses in the food-delivery business, which should further strengthen the bottom line.
JD.com Inc. (NASDAQ:JD) is an internet retail and supply chain-based technology company. It also acts as a service provider and has three segments: JD Retail, JD Logistics, and New Businesses. It is headquartered in Beijing, China.
