Michael Burry Stock Portfolio Performance in 2021: 4 Best Picks

In this article, we discuss the 4 best stock picks and portfolio performance of Michael Burry. If you want to read our detailed analysis of these stocks, go directly to the Michael Burry Stock Portfolio Performance in 2021: 8 Best Picks. 

4. CVS Health Corporation (NYSE:CVS)

Number of Hedge Fund Holders: 61

Gain in Share Price in 2021: 47%    

CVS Health Corporation (NYSE:CVS) provides healthcare services. Latest data shows that Scion Asset Management owned 200,000 shares of CVS Health Corporation (NYSE:CVS) worth around $16.9 million at the end of September, representing over 40% of the portfolio. Burry first bought a stake in CVS Health Corporation (NYSE:CVS) in the third quarter of 2020. This stake consisted of 150,000 shares bought at an average price of $62.22 per share. He then sold off that entire stake in the next quarter before buying a new position in CVS Health Corporation (NYSE:CVS) in the first quarter of 2021. 

Since then, Burry has nearly doubled his bet CVS Health Corporation (NYSE:CVS). Along with Burry, analysts are also bullish on CVS Health Corporation (NYSE:CVS). On January 11, Bernstein analyst Lance Wilkes maintained an Outperform rating on the stock and raised the price target to $116 from $111, underlining that the company seemed on a “strategic path” to developing an omni-channel care business. 

The hedge fund sentiment around CVS Health Corporation (NYSE:CVS) also makes for positive reading. Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Harris Associates is a leading shareholder in CVS Health Corporation (NYSE:CVS) with 8 million shares worth more than $685 million. At the end of the third quarter of 2021, 61 hedge funds in the database of Insider Monkey held stakes worth $1 billion in CVS Health Corporation (NYSE:CVS). 

In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and CVS Health Corporation (NYSE:CVS) was one of them. Here is what the fund said:

“We sold our position in CVS Health Corp. to allocate capital to companies with larger margins of safety. During the five years that we owned CVS Health Corp., the company acquired Aetna. At the time, we also owned Aetna, and we believed the combination of the two companies would create additional value. After the acquisition, its business performance has been disappointing. We reevaluated our assumptions and determined its value has not grown.”