Michael Burry is Selling These 5 Stocks

4. Capital One Financial Corp. (NYSE:COF)

Michael Burry’s Stake in Q1: $7,212,000

Another banking company sold by Michael Burry during the second quarter, Capital One Financial Corp. (NYSE:COF) has seen its shares actually gain by 15% year to date through August 15. Michael Burry owned about 75,000 shares of Capital One Financial Corp. (NYSE:COF) during the first quarter. Capital One Financial Corp. (NYSE:COF) accounted for about 6.74% of the total portfolio of Scion as of the end of March. This entire stake was sold during the second quarter.

In July, Capital One Financial Corp. (NYSE:COF) posted Q2 results. Adjusted EPS in the quarter came in at $3.52 beating estimates by $0.28. Revenue in the quarter jumped 9.5% year over year to $9.01 billion, missing estimates by $130 million.

ClearBridge Value Equity Strategy made the following comment about Capital One Financial Corporation (NYSE:COF) in its first quarter 2023 investor letter:

“We also added Capital One Financial Corporation (NYSE:COF), a largely domestic diversified financial services company with a focus on credit cards that also operates a leading auto lending business. We believe recent regulatory changes such as the Current Expected Credit Losses (CECL) methodology of the U.S. Treasury and the ability of credit card companies to manage credit risks have improved the risk profile of leading credit card businesses but have been underappreciated by the market. With its substantial financial reserves, we believe that Capital One is well-positioned to navigate future economic uncertainty. Additionally, we believe this current market and credit cycle is fundamentally different than prior ones due to stronger consumer balance sheets, excess savings, strong wage growth and strong employment environment. As a result, we believe Capital One’s current price has already been overly discounted, and we expect it to offer compelling upside despite further risks of drawdown when a recession emerges.”