‘The Big Short’ Investor Buys Into Shipping

A new SEC filing shows that the Scion Asset Management, the private investment firm founded and led by famed investor Dr. Michael Burry, purchased about $10.5 million worth shipping stocks in the first quarter of 2020.

Burry was famously portrayed as one of the main characters in the 2015 movie “The Big Short” about his early predictions and profits from the U.S. housing market crisis. The movie is based on a 2010 book, “The Big Short: Inside the Doomsday Machine,” by Michael Lewis. His portrayal in film and successful investment strategies has earned him a cult-like following among many investors.

As of March 31, 2021, Scion Asset Management had assets under management (AUM) of $638,901,404, according to the hedge fund’s latest 13F filing for Q1 2021.

The filing also shows Scion purchased 354,711 shares of Genco Shipping & Trading Limited (GNK), 190,100 shares of Scorpio Tankers (STNG), and 530,000 shares of Golden Ocean Group (GOGL) for about $3.5 million each. All marked his first entry into the stocks.

The purchases were revealed on Monday, May 17, and all three stocks gained on the day.

GNK and GOGL specialize in dry bulk shipping, while STNG specializes in tankers used for transporting petroleum products. Dry bulk is among one shipping’s hottest sectors amid growing global demand for commodities. Tankers, while lagging behind the dry bulk sector in recent months, also shows signs of promise. But don’t take my word for it, I’m not a financial advisor and this is not financial advice.

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