Scion Capital Stocks and Bets with Michael Burry

Michael Burry, a renowned value investor, founded Scion Asset Management in 2018, after leaving his position as the head of the quantitative equity trading group at Bridgewater Associates.

He brought his expertise and experience to Scion, where he focused on identifying undervalued companies with strong fundamentals.

Burry's investment strategy at Scion involves taking long positions in stocks that he believes are undervalued, often betting against the market's consensus.

His approach is centered around identifying companies with strong financials, competitive advantages, and growth potential.

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Burry holds a bachelor's degree in economics from the University of California, Los Angeles, and an M.D. from Vanderbilt University School of Medicine. He completed his neurology residency at Stanford Hospital and Clinics.

Scion Asset Management manages hedge funds with discretionary assets under management of $196,206,549 (as of March 2024). Their last reported 13F filing for Q1 2024 included $103,486,463 in managed 13F securities, with a top 10 holdings concentration of 75.41%.

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Michael Burry's investment strategy at Scion Capital was based on a deep analysis of financial statements and company data. He was known for taking contrarian positions and making bets against popular market trends, which paid off and generated an average annual return of over 20%.

Burry's net worth is estimated to be around $300 million, cementing his place as one of the most successful investors of his generation. He has continued to invest through his own fund and has made headlines for his involvement in the GameStop short squeeze.

Here are Michael Burry's top nine holdings as of February 14, 2023:

Burry's investment philosophy is guided by a 1-page document that emphasizes ignoring market noise, hunting for value in unloved places, embracing concentration, focusing on free cash flow, and being patient. He has a competitive edge in the healthcare space due to his medical background.

Burry's approach to investing is all about ignoring the noise and focusing on individual opportunities, rather than worrying about the overall market.

He looks for value in out-of-favor industries, where companies are trading at steep discounts, much like thrift shopping for stocks.

In fact, Burry typically holds a concentrated portfolio of 12-18 high-conviction positions, which is a contrarian approach to the more common practice of diversification.

As Burry himself said, "Wide diversification is only required when investors do not understand what they are doing."

To evaluate companies, Burry zooms in on free cash flow and enterprise value, specifically looking at the EV/EBITDA ratio, which varies by industry and economic cycle.

He's willing to be patient and wait for the right opportunity, aiming for a 30-50% gain over 12-18 months, which is a refreshing long-term perspective in a world obsessed with quarterly results.

Michael Burry's investment strategy at Scion Capital was based on a deep analysis of financial statements and company data. He was known for taking contrarian positions and making bets against popular market trends.

Burry's portfolio includes a mix of industries, with holdings in healthcare, energy, and more. He has a competitive edge in the healthcare space due to his medical background. His top holdings include companies like The GEO Group, Black Knight Inc., and Coherent Corp.

Here's a breakdown of some of the stocks and bets made by Michael Burry through Scion Capital:

Note that this list only includes some of the top holdings of Scion Asset Management as of February 14, 2023.

Burry made a final bet this quarter by buying transports, specifically Scorpio Tankers (STNG), Golden Ocean Group Ltd. (GOGL), and Genco Shipping & Trading (GNK).

Tankers are not buy-and-hold investments, you need to buy when the getting's good and exit before daily rates collapse and operating losses skyrocket.

STNG is one of those times where the getting's good, and it's reflected in tanker stock charts.

Tankers are not a reliable investment, you need to time the market carefully to avoid losses.

Here are the specific transports Burry bet on:

Michael Burry, the founder of Scion Asset Management, made headlines for his Tesla short position, but the question remains, did he lose money on it? We can't be certain because the details of his trade are unknown.

The maximum downside of a put option is limited to the premium paid, so Burry's potential loss was capped at the cost of buying the puts. This is a key aspect of options trading that can help manage risk.

Burry's strategy involved buying puts on Tesla, which would have allowed him to profit if the stock price fell. However, without knowing the expiration date or strike price, it's impossible to determine the outcome of his trade.

Here are some key points about options trading that might be helpful:

The lack of information about Burry's Tesla trade makes it difficult to say whether he lost money or not.