Michael Burry, who became known in 2008 for anticipating the 2008 housing crisis, is a Wall Street man closely followed by the market.

Their operations are usually as striking as they are risky. On this occasion, his hedge fund Scion Asset Management bought almost 634,000 shares of the company BioAtla (BCAB).

This biotech company has just a market capitalization of less than $80 million and its shares are worth $1.90.

It should be noted that Burry acquired the securities when they were trading at 1.37 USD. That is to say, it has already achieved an interesting performance of almost 40%.

Why did Michael Burry look at BioAtla?

One of the characteristics of the entrepreneur is to look for undervalued companies and BioAtla is one of them. It is currently 90% below its historical maximum reached at the end of 2020.

It is clear that Burry sees potential in this firm that focuses on antibody-based cancer therapies, although it is in the clinical trial stages and success is not guaranteed.

It is important to clarify that this investment is notoriously risky. Clinical trials often last years and the results are uncertain.

This Wednesday BioAtla shares rose 8%, accumulating a gain of 21% in the last three months. However, since the beginning of the year it has registered a loss of 29.6%.