Buffett, Burry invest in Capital One, diverge on other bank stocks

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Warren Buffett and Michael Burry's firms both swooped on Capital One last quarter - but parted ways on other bank stocks

Their purchases were revealed in Securities and Exchange Commission filings on Monday. Capital One's stock price climbed 3% on Monday, and gained another 5% in early trading on Tuesday.

Funds linked to other prominent investors including Steve Cohen, Jeremy Grantham, Jim Simons, and Ken Fisher also bought Capital One shares last quarter. For example, Cohen's Point72 Asset Managementa position of 449,000 shares worth $43 million on March 31, and purchased bullish call options on another 600 shares.

Buffett and Burry - best known for his starring role in the book and movie"The Big Short" - are both value investors who specialize in identifying and buying underpriced stocks. Their teams likely determined that Capital One shares, which have roughly halved in price since August 2021, were a bargain and worth buying.

However, Berkshire and Scion took different tacks when it came to other bank stocks. Buffett's conglomerate exited its bets on BNY Mellon and US Bancorp last quarter, after slashing both positions in the fourth quarter of last year. In contrast, Burry's fund added First Republic, Pacific Western, Western Alliance, New York Community Bank, and Huntington Bank to its stock portfolio.

Burry's purchases were more unexpected, given his since-deleted tweets about the banking debacle. He suggested Silicon Valley Bank might be

 

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