We recently released a list 10 Michael Burry stocks have huge upward potential. In this article, we will look at where Magnera Corporation (NYSE:MAGN) faces positions with other Michael Burry stocks with huge upward potential.
Michael Burry, Founder and Manager Scion Asset Managementfamous for predicting and profiting from the collapse of the housing bubble in the mid-2000s. His bold counter-trend bet is famous in the book, the movie "The Big Dwarf". Burry's investment strategy is drawn greatly from the rigorous market analysis and principles outlined in 1934's Security Analysis. The book advocates the advantages of financial statement analysis and emphasizes the importance of intrinsic value and structured investment principles.
That is, Bury never shys away from putting his own unique stamps on Wall Street’s principle of time-testing. By leveraging sophisticated financial instruments such as derivative securities and short selling, Burry has accumulated wealth, challenging traditional market wisdom. His 2001 Scion Value Fund Letter provides fascinating insights into his counter-trend prospects, which prioritizes long-term value over short-term price volatility. Burry made it clear that he was willing to tolerate short-term volatility in order to achieve substantial long-term returns. He said:
“I always choose a dollar bill with huge volatility discounts, rather than a dollar bill that sells at a fairly stable premium.”
He also has no doubts about making large investments in some of the stocks he believes are undervalued, investors who are holdings by Scion at the end of 2024.
Before the quarter ended on December 31, 2024, Michael Burry’s investment in technology stocks in the country was just around the corner after DeepSeek’s AI breakthrough sparked $1.3 trillion in Chinese tech stocks. The moves came during a period of high volatility in Chinese stocks, when investors appeared to lose confidence in Beijing after stimulus measures were implemented in late September. The government's actions sparked a crazy rally until early October, despite poor economic outlook due to the property crisis and unhappy with the scope of fiscal stimulus in the following months.
In this article, we examine Scion Asset Management's fourth quarter 2024 13F file to list Michael Burry's stock picks with the highest upside potential. We rank the company by its upward potential. These stocks are also popular among elite hedge funds.
Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our strategy for quarterly newsletters selects 14 small and large stocks every quarter, returning 373.4% since May 2014, beating its benchmark by 218 percentage points (See more details here).
Michael Burry of Scion Asset Management
Scion Asset Management's Q4 shares: US$3.63 million
Analysts as of May 9: 47.25%
Number of hedge fund holders: 47
Magnera Corporation (NYSE:MAGN) is a combination of Glatfelter and Berry's HH&S division to produce fiber-based engineering products. The company offers lightweight papers and composite fibers for a variety of applications, including food and beverage, wall covering, technical expertise, composite laminates and metallized products.
Magnera Corporation (NYSE:MAGN) reported second-quarter earnings and revenues for May 7, which are not expected by analysts, while also lowering its full-year guidance. The company cites the impact of ongoing global economic uncertainty. In the face of tariff-driven demand issues, CEO Curt Begle Magnera said, “prepare for proper operational and cost measures that are aligned with short-term market reality.” Going forward, Magnera Corporation (NYSE:MAGN) reduces its annual comparable EBITDA guidance from $360 to $380 million. The company reiterated its merged adjusted free cash flow forecast for fiscal 2025, at a price of $750-95 million.
In it, Kingdom Capital Advisors states about Magnera Corporation (NYSE: MAGN) Q4 2024 Investor Letter:
“What we most important in the fourth quarter is Magnera Corporation (NYSE: Majestic). Magnera, a merged product between Glatfelter and Berry's HH&S businesses, began independent transactions in November. The combined entity should submit its 10-K as soon as possible and report its first quarter in February, after which we expect improvements in its non-woven volume. It's not an exciting business, producing products like wipes, diapers, etc. Magnera is spinning with a lot of debt, but we interpret its size-high $800 million notes as a sign that businesses are turning. Debt is cheap and is called a large amount of assets. We hope that management will focus on fast de-vehicle removal. As a bonus, some of their business lines have been affected by cheap imports in recent years, and I hope Magnera may be a beneficiary of a stricter tariff regime. At a high level, this is our investment framework: •Magenra should have approximately $1.8B of net debt after the spin, while 36 million shares should have approximately $400 million in EBITDA. The stock is currently trading at $18. •I think Magnera can generate > $100 million in annual FCF in the next three years, and through synergistic effects and quantitative recovery, EBITDA increases EBITDA to $47.5-500 million. Over the past decade, these businesses have averaged more than $500 million in EBITDA per year, suggesting that this normalization is not overly positive. • On the current 6x EBITDA multiple, this means the price of commercial transactions within three years is $40 (~120% rise/30% IRR). ”
Overall, huge Ranked fourth There is huge upward potential on our Michael Burry stock list. While we acknowledge the potential to be a grand investment, our belief is that certain AI stocks offer higher returns and do this in a shorter time frame. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for more promising AI stocks but traded for less than 5 times the gains, check out our report The cheapest AI stock.
Read the next article: Buy 20 Best AI Stocks Now and According to the billionaire, there are now 30 best stocks.
Disclosure: None. This article was originally published in Inside monkey.