If you’ve seen The Big Short, he’s one of the investors that was shorting the housing market before the crash of 2007-2008. His hedge fund has stood quiet for a long time and has recently released their 13f and some of the picks are odd but should give ideas into where schmucks like us could be looking. The 13f statements don’t show when the positions were opened nor do they show short positions.
He has positions in Tailored Brands (TLRD), Sportsman’s Warehouse Holdings (SPWH), Cleveland-Cliffs (CLF), and Gamestop (GME). The death of retail seems to have, at least to Burry, created opportunity for some potentially serious returns. GME is trading below its book value and is sitting on over its market cap in cash and cash equivalents (I’m biased because I’m also long GME and that was before I found out Burry was long GME). CLF has high returns on capital (also extremely leveraged but they’re a mining company so that’s sort of part and parcel with the industry) and a high earnings yield (EBIT/EV). SPWH has high returns on capital and also a high earnings yield. TLRD, the parent company of Men’s Warehouse, also has high returns on capital and high earnings yield. SPWH, CLF, and TLRD are all sitting on high amounts of debt. GME can pay off all of their debt right now and be a debt free company. If he’s betting on them being priced for their earnings yield potential then he’s found great companies to do it but their being highly levered is unnerving in some fashion. But I have no issue with following a famous investor into a position provided I do my own reading on the company’s statements instead of buying blindly because “what does he see that I should be seeing” is a question I need to know the answer to.