The implosion of some of the popular regional banks in the United States earlier in the first quarter was bad news for many investors, however, for “Big Short” investor Michael Burry, the calamity appears to be good news.
According to an update shared by Benzinga citing data from the latest filing made by Scion Capital, Burry has been acquiring the shares of most distressed banks including First Republic Bank, PacWest Bancorp, Western Alliance Bank and New York Community Bancorp amongst others.
The shares acquisition is very strategic as these banks are currently trading at some of their worst levels since they came into existence with many at the brink of a bank run. The crisis that was precipitated by Silicon Valley Bank as well as the run on Signature Bank has triggered a general Fear Uncertainty and Doubt among investors in the US regional banking sector.
In the last interest rate hike announcement from the Federal Reserve Chairman Jerome Powell, the claim that the US banking sector is healthy was made, despite the apparent valuation slump for most of the top rated entities in the space. For survival, most of these banks depend on outright acquisition or huge individual investments by investors like Michael Burry.
Michael Burry and his Strategy Investments
Michael Burry is a highly famed investor whose interest in the banking ecosystem was ignited following the global financial crisis of 2008. Riding on his deep experience in the industry and the recent acquisition of First Republic Bank by JPMorgan Chase, the investments by the Big Short investor is now being seen as a vote of confidence in the stocks.
The strategic investments of Michael Burry also extends to the digital currency ecosystem. He is known to take an outright differing stance from the SEC Chair and the mode of regulatory enforcement in the United States.
Based on his role and pedigree, Burry is known to issue crucial market calls which has served as a major guide to a host of investors who believe in the veteran trader.
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