Hedge Fund Filing Recap and Huge Short Interest Name Gets Bought
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Good evening traders! What a chop fest in the market, although my list from this morning did have some huge wins:
If you can’t read that, make sure you’re a paid sub and you’ll get these trade plans straight to you email.
My SKYT 0.00%↑ call was up +32% as I mentioned their great earnings.
MAR 0.00%↑ also went $172 at the open to $181 by close! Options ended up going +1000% on that as well which is amazing.
The important thing today is that hedge funds have released their quarterly 13F filing which shows all the buys/sells they make. If you want to copy the trades of a billionaire then this is the best way to see what actions they are taking.
The 13F is filed by hedge funds with over $100M in AUM (assets under management), so I’ll be recapping the trades of some legendary hedge funds and analyzing what those trades may mean.
One stock is interesting because these funds have taken a huge stake in the most shorted stock on the market, which can be a deadly combination for shorts.
IMPORTANT: You may not be able to buy these stocks at the same price since they bought them at any point in the last quarter, it’s important not to chase but to rather use these as ideas and always do your own DD.
Scion Asset Management -Michael Burry
Top Holding: GEO at $7.38 is 25% of portfolio and he reduced his position in this stock
New stocks:
BKI at $61.75 - provides data to US real estate companies
COHR at $35.10 - manufacturing company, specifically in defense
BABA at $88 and JD at $56- China retail names that tend to move together
WWW at $10.93 - apparel and footwear company with a P/E of 8
MGM at $33.53- casino, hotel, and resorts
SKYW at $16.51 - North America airline servicing company
Overall, it looks like he’s position in China names and in typical fashion he has exposure to names that will benefit if tensions rise with COHR. Fundamentally, WWW is the best looking as they’ve got a pretty good amount of cash and an attractive P/E. SKYW is trading under cash/sh which is also good.
Full portfolio/top holdings:
Berkshire Hathaway - Warren Buffet
No new stocks but he added to AAPL 0.00%↑ PARA 0.00%↑ and LPX 0.00%↑ .
What’s interesting is that Buffet bought LPX 0.00%↑ which does building and home remodeling demands and Burry also bought a company that provides real estate data.
I also like PARA 0.00%↑ because they have a brand new streaming service (Paramount+) and are trading at a P/E of just 5.29.
AAPL 0.00%↑ is the safe bet and according to insiders in the field they're expanding into the metaverse witha VR set as soon as this year!
Below is the chart for URE 0.00%↑ which is the real estate ETF, which may breakout soon as long as it doesn't trade under $60:
One significant change is his selling of TSM 0.00%↑ which he sold 86% of his stake in. Unlike Burry who added to China names, Buffet is exiting them. I do see headwinds coming in that direction, with pressure from China and diverification from that region, TSM 0.00%↑ could be in some trouble.
Full portfolio top holdings:
Duquesne Family Office - Stanley Druckenmiller
He added big in semiconductor stocks NVDA 0.00%↑ and AMD 0.00%↑ along with OXY 0.00%↑ which Warren Buffet owns a huge stake in (over 20% the company).
His largest holding is still CPNG 0.00%↑ which is the Amazon of Korea and he's down pretty big on it. I still like this stock as I think Korea has room to grow.
He sold his AMZN 0.00%↑ MSFT 0.00%↑ CRWD 0.00%↑ and PPG 0.00%↑ .
Long CPNG/Short AMZN is an interesting pairs trade because he’s expecting the Korean e-commerce market to grow, or he just exited Amazon because he likes CPNG and doesn’t want that much exposure to the e-commerce sector. Hard to know.
Full portfolio/top holdings:
Point72 Asset Management - Steve Cohen
Added new positions in CRM 0.00%↑ NFLX 0.00%↑ NTAP 0.00%↑ and SU 0.00%↑
Added more META 0.00%↑ as well. He has a very diversified portfolio so he has no specific positons which overwhelm the portfolio. I will note, he added UNH 0.00%↑ put options.
Saudi Arabia's Sovereign Wealth Fund
I’m adding this one because they caused huge waves with the EV names the other day and seem to be gaining traction amongst investors.
They now own over 1.1B shares of LCID 0.00%↑ and own about 9.2% of the company. They trimmed holdings of FTCH 0.00%↑ .
There are rumors they are going to buy out rumors, but those are non verified. I still like RIVN 0.00%↑ as the best sympathy EV played because they have backing from Amazon and a lot of cash, although they aren't profitable yet.
Bridgewater Associates - Ray Dalio
Bridgewater Associates, aka Ray Dalio just tripled its best on the original meme stocks GME 0.00%↑ GameStop and AMC 0.00%↑.
He also bought FTCH 0.00%↑ and PL 0.00%↑ .
PL 0.00%↑ is an interesting speculative pick because they do constellation satellites and I see the satellite industry taking a solid footing.
He is another fund with very diversified holdings, so I wouldn’t take these individual stocks with too much importance.
Full portfolio/top holdings:
High Short Interest - SI 0.00%↑ at 81% short is the highest on the market.
Citadel just reported a 5.5% stake in Silvergate Capital aka SI 0.00%↑, although that company does a lot of market making so this could just be part of their hedging business.
Susquehanna is another hedge fund that took a 7.5% stake in SI 0.00%↑ .
Here’s where things get interesting: one of the biggest names on Wall Street, Soros Fund Management is short on SI 0.00%↑ via put options on 100K shares of SI 0.00%↑
Will retail try to squeeze them out?
In addition to the huge short interest, most of the shares are tied up by the hedge funds themselves, so when the borrow rate starts to rise, this can squeeze.
The chart is pretty great and you can see the short interest below at 81% of the float!:
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-Adit Dayal