Markets

The portfolio of a descendant of Michael Berry collapses after the collapse of the banks

Noted short seller Michael Berry saw his firm Scion Asset Management succeed in the first quarter after investing in several regional banks that had suffered sharp declines in share prices.

Well-known short seller Michael Berry, made famous by the book and movie The Big Short, and his company, Scion, suffered a huge loss this quarter. Scion Asset Management has bought shares in several regional banks, such as First Republic Bank, PacWest, and Western Alliance.

The banking crisis is hitting the financial world hard

The company had put about $2 million into First Republic Bank at the end of the first quarter, but the bank’s shares have fallen a whopping 97% since then as it collapsed.

Other bank shares also declined significantly. PacWest is down 79% year-to-date, and Wester Alliance is down 48% over the same period.

Michael Berry portfolio: Twitter

Currently, Scion’s US equity portfolio is about $107 million. Companies in this portfolio include Alibaba, Capital One, Wells Fargo, Zoom, and Signet Jewelers.

Chinese shares in Jd.com and Alibaba Group make up Scion’s largest holding. The company is certainly under pressure from the banking situation, which continues to reel from global markets.

The situation of banks in the US has led to renewed interest in the health of the financial industry in the country and, by extension, globally. Victims of the banking crisis include Silicon Valley Bank, Signature Bank, Silvergate and Credit Suisse.

The rescue costs are huge, amounting to $400 billion. The bailout of Silicon Valley and Signature Bank comes to about $140 billion. Banks have also stepped in to help those who have fallen, with JPMorgan, Bank of America and Citigroup providing $30 billion to First Republic Bank.

Michael Berry is a Crypto Skeptic

Michael Berry’s stance on cryptocurrency has not been positive. On one occasion in the past, Bure said this cipher It should not be touched Because “there is a lot of leverage.”

He said in a tweet on November 9, 2022, that

“If you don’t know how much leverage is in crypto, then you don’t know anything about crypto, no matter how much you think you do.”

In December 2022, he clarified his skepticism regarding cryptocurrency by saying that proof of reserve reviews like those offered by Binance are “essentially meaningless.” He was effectively saying this because cryptocurrency validators were learning on the job.

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