Michael Burry is Buying These 10 Stocks As Recession Fears Mount

Published June 28, 2022 at 9:28 am EDT Updated September 7, 2026 at 2:17 pm EDT

In this article, we discuss the 10 stocks that Michael Burry is buying as recession fears mount.

Michael Burry of Scion Asset Management has recently grabbed headlines on Wall Street after he predicted that the Federal Reserve may pause or reverse a plan for interest-rate hikes. The prediction, made through a series of tweets that he has since deleted, is not unique, as prominent investors like Jim Cramer have already made similar comments, but is noteworthy since Burry is famous for his expertise in economic crisis, having made a name for himself by shorting the subprime mortgage market that led to a global financial meltdown in 2009.

Burry claims that retailers will be lumped with excess inventory during the Christmas period, suggesting that as they reduced prices to sell these excess goods, inflation might cool down to an extent that the central bank might reconsider hiking interest rates too aggressively or even reversing a planned hike for later this year. However, Burry has also said that consumer spending will slump and dismissed a rebound in stocks, stressing that the market drawdown will only end if people swore off “tech stocks, cryptocurrencies, and non-fungible tokens”.

The comments are somewhat bizarre considering that the latest filings of his hedge fund as of the end of Q1 reveal that Burry holds stakes in several tech-focused firms like Alphabet Inc. (NASDAQ:GOOG), Warner Bros. Discovery, Inc. (NASDAQ:WBD), and Booking Holdings Inc. (NASDAQ:BKNG). Burry had previously predicted that US households are on track to exhaust their savings by the end of 2022 because of soaring food, fuel, and housing costs. He has also forecast that the benchmark S&P 500 Index might plunge 52% from record highs during the upcoming recession.

Our Methodology

The stocks were picked from the first quarter regulatory filings of Scion Asset Management. The stocks that are a new addition to the portfolio, compared to filings for the fourth quarter of 2021, were selected. Data from around 900 elite hedge funds tracked by Insider Monkey in the first quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.

Michael Burry is Buying These 10 Stocks As Recession Fears Mount

Michael Burry of Scion Asset Management

Michael Burry is Buying These Stocks As Recession Fears Mount

10. Apple Inc. (NASDAQ:AAPL) PUT

Number of Hedge Fund Holders: 131

Apple Inc. (NASDAQ:AAPL) is a consumer electronics firm. Per 13F filings for the first quarter of 2022, Scion Asset Management owned PUT options on 206,000 shares of Apple Inc. worth $35.9 million, representing 17.86% of the portfolio. On June 27, the top court in the US rejected a bid by the company to appeal a decision that had upheld two smartphone patents in favor of Qualcomm in a dispute between the two firms. The two companies have already agreed to a settlement but the former claims that the latter can sue again once that settlement expires.

On June 27, Bernstein analyst Toni Sacconaghi maintained a Market Perform rating on Apple Inc. stock with a price target of $170, backing the company to grow the paying subscribers of AppleTV+ to up to 40 million.

At the end of the first quarter of 2022, 131 hedge funds in the database of Insider Monkey held stakes worth $182 billion in Apple Inc., compared to 134 in the previous quarter worth $186 billion.

Just like Alphabet Inc., Warner Bros. Discovery, Inc., and Booking Holdings Inc., Apple Inc. is one of the growth stocks in the limelight as interest rates rise.

In its Q4 2021 investor letter, Berkshire Hathaway highlighted a few stocks and Apple Inc. was one of them. Here is what the fund said:

“Apple Inc. – our runner-up Giant as measured by its yearend market value – is a different sort of holding. Here, our ownership is a mere 5.55%, up from 5.39% a year earlier. That increase sounds like small potatoes. But consider that each 0.1% of Apple’s 2021 earnings amounted to $100 million. We spent no Berkshire funds to gain our accretion. Apple’s repurchases did the job. It’s important to understand that only dividends from Apple are counted in the GAAP earnings Berkshire reports – and last year, Apple paid us $785 million of those. Yet our “share” of Apple’s earnings amounted to a staggering $5.6 billion. Much of what the company retained was used to repurchase Apple Inc. shares, an act we applaud. Tim Cook, Apple’s brilliant CEO, quite properly regards users of Apple Inc. products as his first love, but all of his other constituencies benefit from Tim’s managerial touch as well.”

9. Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH)

Number of Hedge Fund Holders: 19

Sportsman’s Warehouse Holdings, Inc. is a sporting goods retailer. Latest data shows that Scion Asset Management owned 250,000 shares of Sportsman’s Warehouse Holdings, Inc. at the end of the first quarter of 2022 worth over $2.6 million, representing 1.32% of the portfolio. The firm recently posted earnings for the first quarter of 2022, reporting earnings per share of $0.05, beating estimates by $0.06. The revenue over the period was $309 million, beating expectations by $3.3 million.

On June 1, Craig-Hallum analyst Ryan Sigdahl maintained a Buy rating on Sportsman’s Warehouse Holdings, Inc. stock and lowered the price target to $15 from $20, noting that the “everyday value and no frills” model of the firm was more defensible than higher priced destination retailers.

Among the hedge funds being tracked by Insider Monkey, Wyoming-based investment firm Cannell Capital is a leading shareholder in Sportsman’s Warehouse Holdings, Inc. with 2.5 million shares worth more than $27 million.

In its Q1 2022 investor letter, Merion Road Capital Management, an asset management firm, highlighted a few stocks and Sportsman’s Warehouse Holdings, Inc. was one of them. Here is what the fund said:

“During the quarter I added to Sportsman’s Warehouse Holdings, Inc.. SPWH is an outdoor sporting goods retailer with about half of their revenue coming from hunting & shooting products (guns, ammo). I initiated our position back in December following their failed merger with Great Outdoors on the grounds of anti‐trust concerns. It appeared that the stock was being sold off indiscriminately by merger arbitrageurs and valuation seemed attractive, particularly after adjusting for the receipt of a $55mm termination payment and unwind of excess inventory.

While the dust has largely settled from an investor base perspective, Sportsman’s Warehouse Holdings, Inc. remains attractively priced with a few upcoming catalysts. Fundamentally the company is well positioned. Following the tragic Parkland school shooting two large competitors to Sportsman’s Warehouse Holdings, Inc., Dicks Sporting Goods and Walmart, made the decision to exit the category; their absence makes the competitive landscape for Sportsman’s Warehouse Holdings, Inc. a lot more favorable than in prior years. Furthermore, it is no surprise that gun and ammo sales during covid experienced tremendous growth. Unlike prior cycles, however, this wave saw an increase in new gun buyers rather than purchases by existing owners. Sportsman’s Warehouse Holdings, Inc. estimates that over the past 18 months the industry created 12mm new firearm owners; using a prior base of 100mm, this implies an increase to their addressable market of 12%. The company is executing on many other internal initiatives including store expansion, omni‐channel growth (e‐comm up to 15% of revenues), loyalty programs (at 3mm members) and new co‐branded credit cards…” (Click here to see the full text)

8. Global Payments Inc. (NYSE:GPN)

Number of Hedge Fund Holders: 64

Global Payments Inc. (NYSE:GPN) is a Georgia-based payments technology and software solutions provider. According to the latest data, Scion Asset Management owned 66,700 shares in Global Payments Inc. at the end of March 2022 worth $9.1 million, representing 4.53% of the portfolio. In early May, the firm announced that it had agreed to collaborate with digital asset platform Bakkt to work on the development of cryptocurrency use cases. The partnership also covers multinational merchant payments acceptance.

On May 17, Goldman Sachs analyst Will Nance initiated coverage of Global Payments Inc. stock with a Neutral rating and a price target of $151, noting that there were concerns around the SMB exposure and credit volume exposure of the firm.

Among the hedge funds being tracked by Insider Monkey, Bermuda-based investment firm Orbis Investment Management is a leading shareholder in Global Payments Inc. with 5.5 million shares worth more than $762 million.

In its Q1 2022 investor letter, Oakmark Funds, an asset management firm, highlighted a few stocks and Global Payments Inc. was one of them. Here is what the fund said:

“Global Payments Inc. is a leading provider of merchant acquiring services. The company is also one of the largest providers of payment processing and related technology solutions to credit card issuers. We believe Global Payments’ merchant acquiring business is well positioned given its strength in software-driven payments. This is one of the fastest growing parts of the industry as small business customers are increasingly recognizing the efficiency benefits of having payments seamlessly integrated into the software they use to run their businesses. In addition, Global Payments Inc. benefits from the broader secular shift away from cash and toward electronic payment methods. Together, these tailwinds have the potential to drive low-double-digit revenue growth and even faster earnings growth. With this strong outlook and with management returning a significant portion of free cash flow to shareholders via repurchase, we think the stock looks attractive at its current valuation of just 12.5x next year’s expected EPS.”

7. Stellantis N.V. (NYSE:STLA)

Number of Hedge Fund Holders: 29

Stellantis N.V. (NYSE:STLA) is a Netherlands-based automobile manufacturer. Regulatory filings show that Scion Asset Management owned 600,000 shares of Stellantis N.V. at the end of March 2022 worth $9.7 million, representing 4.84% of the portfolio. On June 24, the company announced that it was expanding a partnership with decarbonized lithium company Vulcan Energy Resources. As part of the expansion, the carmaker will become the second-largest shareholder in Vulcan with a €50 million investment.

On May 10, Berenberg analyst Adrian Yanoshik initiated coverage of Stellantis N.V. stock with a Buy rating and a price target of EUR 21, noting that despite inflationary pressures, deep order books could help generate free cash flow for the firm.

At the end of the first quarter of 2022, 29 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in Stellantis N.V., compared to 22 in the previous quarter worth $1.2 billion.

6. Nexstar Media Group, Inc. (NASDAQ:NXST)

Number of Hedge Fund Holders: 39

Nexstar Media Group, Inc. (NASDAQ:NXST) is a television broadening and digital media group. It is one of the top media stocks in the finance world. Per latest data, Scion Asset Management owned 76,200 shares in the company at the end of the first quarter of 2022 worth $14.3 million, representing 7.13% of the portfolio. In mid-June, the shareholders of the company approved a plan to eliminate the Class B and Class C share classes of the stock. Ther move was a formality since only Class A shares have been outstanding since 2013.

On May 12, Deutsche Bank analyst Connor Murphy maintained a Buy rating on Nexstar Media Group, Inc. stock and raised the price target to $225 from $216, backing the firm to top expectations on earnings in the coming months.

Among the hedge funds being tracked by Insider Monkey, Canada-based investment firm Cardinal Capital is a leading shareholder in Nexstar Media Group, Inc. with 1 million shares worth more than $204 million.

In addition to Alphabet Inc., Warner Bros. Discovery, Inc., and Booking Holdings Inc., Nexstar Media Group, Inc. is one of the stocks that elite investors are monitoring.

In its Q1 2022 investor letter, Richie Capital Group, an asset management firm, highlighted a few stocks and Nexstar Media Group, Inc. was one of them. Here is what the fund said:

“Nexstar Media Group, Inc. – The television broadcasting and digital media company surged during the quarter after presenting at an investor conference where management pointed to a strong 2022 for both political advertising and retransmission. They have exposure to more than 80% of markets with competitive mid-term political races. Nexstar Media Group, Inc. is developing new ad categories such as sports betting and they are focused on expanding digital ad revenue and providing digital solutions to local advertisers. Auto advertising will return in the fall as auto dealerships re-enter the market to sell their replenished inventory.”

5. Ovintiv Inc. (NYSE:OVV)

Number of Hedge Fund Holders: 44

Ovintiv Inc. (NYSE:OVV) markets oil and natural gas. Latest data shows Scion Asset Management owned 300,000 shares of the company at the end of the first quarter of 2022 worth $16.2 million, representing 8.05% of the portfolio. Burry had last bought shares in the firm in the second quarter of 2022. That position, comprising around 600,000 shares, was purchased at an average price of $26.87 per share. The present holding was acquired at an average price of $42.95 per share. The stake bought in 2021 was sold off entirely in the third quarter of 2021.

On June 14, Barclays analyst Jeanine Wai maintained an Overweight rating on Ovintiv Inc. stock and raised the price target to $72 from $56, noting that overall mood on the oil and gas sector was constructive.

At the end of the first quarter of 2022, 44 hedge funds in the database of Insider Monkey held stakes worth $2 billion in Ovintiv Inc., the same as in the previous quarter worth $1 billion.

In its Q4 2021 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Ovintiv Inc. was one of them. Here is what the fund said:

“The outlook for high multiple favorites depends to a great degree on interest rates. Warren Buffett likened interest rates to the force of gravity for asset prices. At current low levels, high valuations on long-duration assets can be justified. If interest rates move up, the adjustment will be painful. Market action early in the new year, with the swift moves up in interest rates and down in the Nasdaq, offers a taste of the medicine.

We underwrite all our names to have sufficient upside even if risk-free rates move up to 3% (a scenario, not a forecast!). As we evaluate the opportunity set, we find more attractive prospects in the classic value names. We often hear that people think value investing is dead, which only strengthens our conviction. Our gross exposure to classic value has risen from 44% a year ago to 62% currently.

One new name that illustrates the potential we see is Ovintiv Inc., an oil and gas producer. We’ve seen a huge shift in the industry away from growth towards returns on capital, cash generation, and capacity discipline. Ovintiv Inc. exemplifies the change.

OVV’s new CEO Brendan McCracken says: “We are at the forefront of driving innovation to produce oil and gas from shale both profitably and sustainably. We will generate superior returns and free cash flow by continuously improving capital efficiency and expanding margins while driving down emissions. We will deliver that value to our shareholders through disciplined capital allocation.”

Based on crude at $65 (well below the current $83.82 as of 1/14/22), Ovintiv Inc. guides to free cash flow generation of $11B over the next 5 years and $21B in the next 10 years. The company’s market cap is currently $10B and its enterprise value is $16B. It’s returning a significant portion of the capital to shareholders. If crude averages $70 in 2022, the company will return $700M to shareholders (in addition to paying down a significant amount of debt), which implies a yield of 7% at the current $39.53 price. In other words, there’s a good shot the company will return nearly its entire market cap to shareholders over the next 5 years.”

4. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 200

Meta Platforms, Inc. (NASDAQ:META) is a diversified technology company. Securities filings reveal that Scion Asset Management owned 80,000 shares of Meta Platforms, Inc. at the end of March 2022 worth $17.7 million, representing 8.83% of the portfolio. Burry first purchased a stake in the company in the fourth quarter of 2018. The stake comprised over 64,000 shares bought at an average price of over $144 per share. This holding was sold off a couple of quarters later.

On June 8, Piper Sandler analyst Thomas Champion maintained a Neutral rating on Meta Platforms, Inc. stock with a price target of $220, noting that the firm was the best in terms of ad-tech and scale but faced TikTok competition.

At the end of the first quarter of 2022, 224 hedge funds in the database of Insider Monkey held stakes worth $19 billion in Meta Platforms, Inc., compared to 248 in the preceding quarter worth $31 billion.

In its Q4 2021 investor letter, Boyar Value Group, an asset management firm, highlighted a few stocks and Meta Platforms, Inc. was one of them. Here is what the fund said:

“Corporate executives can have many different reasons for selling shares (anticipation of tax law changes, philanthropy, diversification, and much more), but the sheer number of billionaire founders who sold shares in 2021 should raise eyebrows and might well be signaling a market top. Bloomberg’s Ben Steverman and Scott Carpenter report not only that Mark Zuckerberg of Meta Platforms, Inc. (formerly known as Facebook) sold shares in his company almost every day last year but also that the founders of Google sold ~$3.5 billion worth of stock (the first time either Sergey Brin or Larry Page has sold shares since 2017).”

3. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 160

Alphabet Inc. is a California-based technology firm. Securities filings reveal that Scion Asset Management owned 6,500 shares of Alphabet Inc. at the end of March 2022 worth $18 million, representing 8.97% of the portfolio. Burry had first bought the stock in the fourth quarter of 2019. The stake comprised over 8,000 shares purchased at an average price of over $1,000 per share. This holding was sold off by the second quarter of 2019 and a new position was opened in early 2022.

On June 2, Piper Sandler analyst Thomas Champion maintained an Overweight rating on Alphabet Inc. stock and lowered the price target to $2,775 from $2,900, noting that group multiples had declined in the digital ad sector.

Among the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc. with 2.3 million shares worth more than $6.6 billion.

In its Q4 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and Alphabet Inc. was one of them. Here is what the fund said:

“In contrast, we made a different kind of mistake about a decade ago. Google, now Alphabet Inc., performed very well for us while we owned it. The company kept outperforming our assumptions and we kept lowering them to be conservative. “Trees do not grow to the sky.” The stock kept going up and our value grew but did not keep pace with the stock. It hit our estimate of fair value and we sold it with a nice gain, patting ourselves on the back. We kept following the company and what they actually did over the next several years was roughly double the assumptions we used to value it. Therefore, our value was too conservative, and we sold it too cheaply, missing many years of compounding. Fortunately, we experienced some volatility several years ago that allowed us to purchase Alphabet Inc. (Google) again with a margin of safety.”

2. Warner Bros. Discovery, Inc. (NASDAQ:WBD)

Number of Hedge Fund Holders: N/A

Warner Bros. Discovery, Inc. operates as a media firm. Regulatory filings show that Scion Asset Management owned 750,000 shares of Warner Bros. Discovery, Inc. at the end of March 2022 worth $18.7 million, representing 9.29% of the portfolio. On June 14, news publication The Information reported that the company was considering reducing the advertising sales force by up to 30%. The move is part of a cost-cutting approach by new management.

On June 16, JPMorgan analyst Philip Cusick reinstated coverage of Warner Bros. Discovery, Inc. stock with a Neutral rating and a price target of $22, backing the firm to overachieve synergy guidance in the coming months.

Among the hedge funds being tracked by Insider Monkey, New York-based firm Laurion Capital Management is a leading shareholder in Warner Bros. Discovery, Inc. with 13.5 million shares worth more than $338 million.

In its Q1 2022 investor letter, Silver Ring Value Partners, an asset management firm, highlighted a few stocks and Warner Bros. Discovery, Inc. was one of them. Here is what the fund said:

“Discovery completed the acquisition of the Warner Media business from AT&T in April, and the combined business is now named Warner Bros. Discovery, Inc.. We are currently in the middle of an interesting technical event, following the spin-off special situation playbook.

The acquisition was structured as a spin-off of Warner Media, with AT&T shareholders receiving ~ 70% of the shares in the combined entity, or ~ 1.7B shares. Many of these shareholders owned AT&T for its phone business and its dividend. It appears that there has been elevated noneconomic selling as these shareholders exit regardless of price. On the other side, few if any investors want to buy the Warner Bros. Discovery, Inc. shares prior to this forced selling being over.” (Click here to read full text)

1. Booking Holdings Inc. (NASDAQ:BKNG)

Number of Hedge Fund Holders: 99

Booking Holdings Inc. provides online reservation services. Latest data shows that Scion Asset Management owned 8,000 shares of Booking Holdings Inc. at the end of the first quarter of 2022 worth over $18.7 million, representing 9.32% of the portfolio. Macro pressures have started to weigh on the stock in recent weeks after a brief rise in travel at the start of summer. BTIG has forecast that slower travel trends will persist for the rest of the year.

On June 22, JMP Securities analyst Nicholas Jones maintained an Outperform rating on Booking Holdings Inc. stock and lowered the price target to $2,300 from $2,750, noting that the broader travel market was under pressure from recession fears.

At the end of the first quarter of 2022, 99 hedge funds in the database of Insider Monkey held stakes worth $7.5 billion in Booking Holdings Inc., compared to 92 in the previous quarter worth $7.7 billion.

In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Booking Holdings Inc. was one of them. Here is what the fund said:

“The pandemic created opportunities for us to be more aggressive in a variety of areas of the market. We were opportunistic throughout the year, for example, in positioning the portfolio to benefit from a flush consumer eager to return to spending and traveling. New positions included Booking Holdings Inc., an online travel agency with industry-leading margins and a dominant footprint in Europe.”

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