Macro
Michael Burry invests over $10 million in gold, marking his largest Q1 bet amidst rising gold prices and global tensions.
Michael Burry, the investor famed for his prescient call on the subprime mortgage crisis, has made a significant move into gold, purchasing over 440,000 units of the Sprott Physical Gold Trust (PHYS), valued at more than $10 million. This investment in PHYS, a closed-end fund that holds physical gold bullion, marks Burry's largest bet in the first quarter. The trust is currently trading at a 1.67% discount to its net asset value, slightly above its 52-week average discount. This move comes as gold prices have surged, reaching new highs amid reaccelerating inflation and growing geopolitical tensions, with U.S. gold futures topping $2,400 at their peak last month.
In addition to his investment in gold, Burry has increased his stakes in Chinese e-commerce giants JD.com and Alibaba. His portfolio also includes significant positions in HCA Healthcare, Citigroup, and Block, showcasing a diversified approach to investment. Burry's strategy reflects his ability to identify value across a broad spectrum of assets, from precious metals to technology and healthcare sectors. His fame, largely attributed to his successful bet against mortgage-backed securities before the 2008 crisis, continues to make his investment moves highly watched in the financial world.
Bill Gross, known for his legendary status in the bond market, has shifted his focus towards options trading on meme stocks, specifically GameStop Corp. and AMC Entertainment Holdings Inc. Gross sold calls and puts on these stocks, capitalizing on their high volatility driven by speculative trading. His strategy involves selling straddles, betting that the stock prices will not fluctuate beyond a certain range, allowing him to profit from the premium collected. This move highlights Gross's adaptability and willingness to engage with the speculative dynamics of the current market, despite critiquing the meme stock phenomenon as treating the stock market like a casino.
"Piled into a physical gold trust in the first quarter, making it his biggest bet."