We recently published a list of Michael Burry Stock Portfolio: Top 8 Stock Picks. In this article, we are going to take a look at where Molina Healthcare, Inc. (NYSE:MOH) stands against other Michael Burry’s portfolio stock picks.
Legendary investor Michael Burry is best known for his contrarian strategies that often outperform the overall market. Burry is famous for having foreseen the subprime mortgage crisis that occurred from 2007 to 2010. He shorted the mortgage bond market, making $800 million for himself and his investors.
While he made a name for himself at the height of the financial crisis in 2007, the legendary investor has built a reputation on Wall Street on his ability to identify and invest in market-beating opportunities. His recent actions demonstrate a trend toward high-conviction investments in cheap, market-leading businesses.
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“Dr. Burry’s one of those investors who doesn’t just follow the crowd,” says Edward Corona, a market trader and publisher of The Options Oracle Newsletter. “He’s a true contrarian, digging deep into the numbers and spotting opportunities others might miss.”
China is one market in which the legendary investor is taking a keen interest, going by holdings in Scion Asset Management, a hedge fund he established in 2013. While the investment fund focuses on long-term capital appreciation, it also targets undervalued or misunderstood investment opportunities. That’s evident given that Burry’s biggest holdings are Chinese internet giants that have been battered in recent years amid a slowdown in the Chinese economy due to heightened regulatory pressure.
The changes in Scion Asset management came as Beijing stepped up its attempts to boost economic growth while putting breaks to regulatory pressure. Although the unexpected stimulus plan caused a wild surge in Chinese stocks, some market watchers are still wary of the industry’s long-term prospects. The CSI 300 Index, the nation’s equity benchmark, rose 32% in just two weeks following Beijing’s stimulus measures.
Despite identifying as a value investor, Burry tends to jump in and out of positions frequently rather than hold his stocks for an extended period. That was evident as he exited his position in a real estate company in the third quarter on concerns that the sector would capitulate amid high interest rates. His most significant action during the third quarter was selling all of his shares in a real estate investment trust (REIT) in Los Angeles. He used the money he received to hedge against potential losses on some of the company’s biggest investments.
Our Methodology
To make the list of Michael Burry Stock Portfolio: Top 8 Stock Picks we scanned Scion Asset Management portfolio. We then settled on the legendary investor top holdings and analyzed why they stand out as long term plays. Finally, we ranked the stocks in ascending order based on Scion Asset Management’s stake value in the companies.
At Insider Monkey, we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A doctor in scrubs shaking hands with a patient, representing the healthcare services provided to individuals and families.
Molina Healthcare, Inc. (NYSE:MOH)
Scion Asset Management’s Stake Value: $10.34 Million
Number of Hedge Fund Holders: 37
Molina Healthcare, Inc. (NYSE:MOH) offers managed healthcare services to low-income families and individuals via Medicaid, Medicare programs, and state insurance marketplaces. The stock has recouped all the losses accrued last year, affirming why it is one of Michael Burry’s top stock picks in 2025. The 7% year-to-date rally comes from investors reacting to improving financial performance.
The health insurer delivered better-than-expected third-quarter results attributed to increased premium revenue from government-backed Medicaid plans. Premium revenue, which increased 18% year over year to $9.7 billion, is a crucial indicator of underlying growth. Furthermore, the insurer increased its Medicaid coverage to approximately 4.9 million people, marking nearly a 4% rise from the same period last year.
Molina Healthcare, Inc. (NYSE:MOH) also succeeded in expanding its current footprint, securing new contracts, and closing strategic acquisitions, all of which helped shrug off the harm caused by Medicaid redeterminations. It has also moved to strengthen its edge on Medicare and other commercial products with the acquisition of ConnectiCare.
Additionally, it has obtained healthcare contracts in Michigan and Idaho as part of its strategic expansion. The Michigan contract is anticipated to last for seven years, with three one-year extensions possible. Molina Healthcare, Inc. (NYSE:MOH) disclosed that it would issue $500 million in senior notes due in 2033, with the proceeds going toward general business operations.
Overall, MOH ranks 5th on our list of Michael Burry’s portfolio stock picks. While we acknowledge the potential of MOH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MOH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.