$BABA, Burry's largest position, popped 10%. Here's where it can go from here 🎈
Michael Burry. The man who called the 2008 housing crash. The talented, contrarian The highly successful operator of Scion Asset Management who over the last ten years has netted a nearly 12% return CAGR while the S&P has returned less than 8% over that time frame.
He may have just done the same with his largest holding, $BABA, which is starting to show signs of a recover off it’s lows.
Last quarter, Burry doubled down on his investment in the Chinese tech and commerce giant along with other icons like Charlie Munger whose dipped his toes in BABA these last few months.
So why was he buying when the stock is down 50% in the last 5 years and 17% in the past year? Well, news broke on Friday that the CCP was done “cracking down” on Alibaba and hit them with a pretty hefty fine. The market loved the idea of BABA eventually getting out of the CCP regulatory spotlight and jumped 10% on the news.
Now the question is, is the downward pressure on a Chinese tech giant done? If so, the upside would be tremendous. Here’s the analysis on what could happen from here.
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