Michael Burry is Betting Heavily on These 3 Stocks

Below we take a look at why famed value investor Michael Burry is Betting Heavily on These 3 Stocks. For our methodology and a more comprehensive list, don’t miss why Michael Burry is Betting Everything on These 6 Stocks.

3. CoreCivic, Inc. (NYSE:CXW)

Value of Scion Asset Management‘s 13F Position: $6.41 million

Number of Hedge Fund Shareholders: 16

CoreCivic, Inc. (NYSE:CXW) makes its return to Michael Burry’s 13F portfolio six months after he unloaded his former position in the company. CXW was added to Scion Asset’s portfolio during the fourth quarter of 2020 and become the fund’s largest non-options position in the first quarter of last year, though it nonetheless represented only a small slice of that portfolio’s value. The holding now accounts for 15.5% of Scion’s 13F portfolio value.

CoreCivic, Inc. (NYSE:CXW) is the first of two prison operators that Burry is bullish on, which combined account for more than 50% of the value of his fund’s 13F portfolio. The company’s revenue is on pace to decline for the third straight year, while its gross profit and operating income are likely to decline this year compared to last. The company has seen a significant positive swing in its net income this year however.

In August, CoreCivic was forced to slash its FY22 adjusted EPS guidance, citing a delay in the reversal of Title 42, which was likely to increase the number of asylum seekers being detained by ICE, the company’s largest government customer.

Hedge fund ownership of CoreCivic, Inc. (NYSE:CXW) was as volatile as the company’s share price between 2015 and 2020, but has since stabilized after CXW shares bottomed out during the final quarter of 2020. They’ve gained 84% since, including being one of the rare stocks to post gains in 2022, being up by 8.88%. Ken Griffin’s Citadel Investment more than doubled its stake in CoreCivic during Q3 to 1.56 million shares.