Scion Asset Management | Michael Burry's 6 Stock Portfolio Analyzed

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Scion Asset Management | Michael Burry’s 6 Stock Portfolio Analyzed

Published on May 29th, 2023 by Nikolaos Sismanis

Founded in 2003, Scion Asset Management, LLC is a private investment firm led by investing guru Dr. Michael J. Burry.

Scion Asset Management has become increasingly popular due to Dr. Burry’s ability to identify undervalued investment opportunities around the world. The fund only has four clients. It charges an asset-based management fee that can be as high as 2% per year, while it may also take up to 20% of the value of the appreciation from each client’s account.

The fund has around $237.9 million in assets under management (AUM), $106.9 million of which is allocated to the firm’s public equity portfolio. Scion Asset Management is headquartered in Saratoga, California.

Investors following the company’s 13F filings over the last 3 years (from mid-May 2020 through mid-May 2023) would have generated annualized total returns of 56.0%. For comparison, the S&P 500 ETF (SPY) generated annualized total returns of 11.9% over the same time period.

Note: 13F filing performance is different than fund performance. See how we calculate 13F filing performance here.

You can download an Excel spreadsheet with metrics that matter of Scion Asset Management’s current 13F equity holdings below:


Click here to instantly download your free spreadsheet of all Scion Asset Management / Michael Burry holdings now, along with important investing metrics.

Keep reading this article to learn more about Scion Asset Management.

Table Of Contents

Scion Asset Management’s Fund Manager, Michael Burry

Michael J. Burry is known by most as the “Big Short” investor due to the eponymous movie revolving around himself and his story during the days of the Great Financial Crisis, a role played by Christian Bale. However, Dr. Burry has a much broader track record in the investing world.

After attending medical school, Dr. Burry left to start his own hedge fund in 2000. He had already built a reputation as an investor at the time by exhibiting success in value investing. Specifically, his picks were published on message boards on the stock discussion site Silicon Investor back in 1996, with their returns being outstanding! In fact, Dr. Burry had showcased such great stock-picking skills that he drew the interest of companies such as Vanguard, White Mountains Insurance Group, and renowned investors such as Joel Greenblatt.

Nevertheless, it is Dr. Burry’s legendary plays prior to the Great Financial Crisis, and the massive returns that followed that pushed his name into the international spotlight. Particularly, in 2005, Dr. Burry started to concentrate on the subprime market. Based on his analysis of mortgage lending practices utilized in 2003 and 2004, he accurately forecasted that the real estate bubble would come tumbling by 2007.

His analysis resulted in him shorting the market by convincing Goldman Sachs and other investment firms to sell him credit default swaps against subprime deals he saw as weak. Interestingly enough, when Dr. Burry had to pay for the credit default swaps, he experienced an investor revolt, as some investors in his fund feared his prophecy was inaccurate, requesting to withdraw their funds. Ultimately, Burry’s analysis proved right. Not only did he make a personal profit of $100 million, but his remaining investors earned more than $700 million.

To illustrate how successful Dr. Burry’s picks were from the origins of Scion Asset Management to the Great Financial Crisis, the hedge fund recorded returns of 489.34% (net of fees and expenses) between its inception in November 2000 to June 2008. In comparison, the S&P 500 returned just under 3%, including dividends, over the same period.

Michael Burry’s Investment Philosophy & Strategy

The concept of “Value Investing can sum up Michael Burry’s whole investment philosophy”.  He has stated more than once that his investment style is based on Benjamin Graham and David Dodd’s 1934 book Security Analysis. In his words: “All my stock picking is 100% based on the concept of a margin of safety.”

Dr. Burry does not differentiate between small-caps, mid-caps, tech stocks, or non-tech stocks. He only looks for their undervalued elements, regardless of their sector and class. Precisely because he doesn’t focus on a specific industry and because the essence of financial metrics shifts by industry and each company’s place in the economic cycle, Dr. Burry utilizes the ratio of enterprise value (EV) to EBITDA when researching investment ideas.

Accordingly, he disregards price-to-earnings ratios to dodge being deceived by a company’s stated metrics. Company metrics from any one time period can be misleading based on the underlying state of the economy and macros that may benefit or harm the company at a given point in time. Rather, he pays attention to off-balance sheet metrics and naturally, free cash flow.

Scion Asset Management’s Noteworthy Portfolio Changes

During its latest 13F filing, Scion Asset Management executed the following notable portfolio adjustments:

Noteworthy new Stakes:

Noteworthy new Sells:

Scion Asset Management’s Portfolio – All 20 Public Equity Investments

Scion Asset Management’s public equity portfolio is heavily concentrated. The portfolio numbers only 20 equities, with accounting for 9.6% of its holdings. The fund’s top five holdings, which we analyze below, account for 43.9% of its total public equity exposure.

Source: 13F filing, Author, Inc. (JD)

Chinese e-commerce giant accounts for 9.6% of Scion Asset’s management public equity holdings. was founded in Beijing, China, in 1998 by Richard Liu Qiangdong. The company’s headquarters is located in Beijing, but it has a significant presence across China and operates numerous fulfillment centers and warehouses throughout the country.

The company primarily operates as a business-to-consumer (B2C) online retailer, offering a wide range of products, including electronics, home appliances, clothing, books, cosmetics, and more. Importantly, has a comprehensive logistics network and owns and operates its own warehousing and delivery infrastructure, enabling it to provide efficient and reliable order fulfillment and delivery services.

The company has been growing its revenues and enhancing profitability rapidly as its ever-lasting scaling phase persists. That said, note that due to its capital-intensive business model, is a low-margin business with its EBITDA margins remaining below 3%.

Dr. Burry boosted Scion’s position on by 233% during the previous quarter. It is now the fund’s largest holding.

Signet Jewelers Limited (SIG)

Bermuda-based Signet Jewelers is a renowned multinational specialty jewelry retailer with a rich history spanning over 100 years. The company operates a diverse portfolio of well-known retail brands, making it one of the largest jewelry retailers globally. Signet’s primary market is the United States, but it also has a significant presence in the United Kingdom and Canada.

The company’s origins can be traced back to 1910 when the first store, called the “Ratner Group,” was opened in London. Over the years, the company expanded its presence and made several acquisitions, including the purchase of the American jewelry retailer Sterling Jewelers Inc. in 1987. The acquisition of Sterling Jewelers propelled Signet’s growth and positioned it as a major player in the jewelry industry.

Signet’s cyclical business model can result in fluctuating profitability prospects. During the pandemic, for instance, when demand for jewelry declined, Signet reported sustained losses. That said, industry conditions have now been restored, and Signet’s profitability has resumed. The company also pays a dividend, which currently yields 1.3%.

Signet Jewelers is a new holding for Scion Asset Management, which initiated a position in its most recent quarterly filings. It is now the fund’s second-largest holding, accounting for 9.4% of its holdings.

Coherent Corp. (COHR)

Coherent Corp. produces and manufactures, and sells engineered materials, optoelectronic components, and devices internationally. The company’s vast portfolio of products includes optical and electro-optical components and materials, fiber lasers, infrared optical components, and high-precision optical assemblies, amongst others.

Demand for the company’s products has remained robust lately, but inflationary pressures on the expenses side of the income statement have suppressed profitability severely. This is a low margin business in the first place, and so despite the company posting record revenues last year, it saw a decline in earnings.

Black Knight is a new holding for Scion Asset Management, initiated in its most recent quarterly filings. It is now the fund’s third-largest holding, accounting for 12.8% of its holdings.

Wolverine World Wide, Inc. (WWW)

Wolverine World Wide designs, produces, and distributes footwear, apparel, and other accessories globally. The company’s operating segments include Active Group, Work Group, and Lifestyle Group, which individually focus anywhere from casual footwear and apparel to industrial work boots and apparel.

Competition has been eating the company’s lunch for years, with Wolverine having a hard time sustaining its sales over the past decade, let alone growing them. Profitability has also been weak. Michael Burry is likely betting on Wolverine as a distressed equity play, as the company’s sales are still more than twice its current market cap.

Wolverine World Wide is a new holding for Scion Asset Management, initiated in its most recent quarterly filings. It is now the fund’s fourth-largest holding, accounting for 10.7% of its holdings.

Alibaba Group Holding Limited (BABA)

China-based Alibaba Group is another Chinese holding of Scion management’s portfolio following

Alibaba is a multinational conglomerate and one of the world’s largest e-commerce companies. It was founded in 1999 by Jack Ma. Today, it operates various online platforms that facilitate business-to-business (B2B), business-to-consumer (B2C), and consumer-to-consumer (C2C) sales.

Unfortunately, shares of the Chinese e-commerce behemoth have remained under pressure despite the company generating rather robust revenues, given the ongoing trading environment. The bottom line has softened lately as a result of inflationary pressures and supply chain inefficiencies, but profits are still substantial.

The stock’s valuation has been compressed to a very low forward P/E ratio of about 9.5X, primarily because investors have been ditching Chinese equities due to the ongoing geopolitical risks involved. In response, Alibaba has been repurchasing stock in bulk. Specifically, the company repurchased nearly $10.9 billion worth of stock over the past four quarters. Michael Burry is likely betting on the stock’s valuation levels normalizing as we advance, which sounds like a reasonable investment case given Alibaba’s excellent financials.

Alibaba is a relatively new holding for Scion Asset Management, initiated in Q4-2022. It is now the fund’s third-largest holding, accounting for 9.1% of its holdings.

New York Community Bancorp, Inc. (NYCB)

New York Community Bancorp was founded in 1859 as Queens County Savings Bank. Over the years, it has grown through mergers and acquisitions to become one of the largest banks in the New York area.

The company provides a range of banking products and services to individuals, businesses, and municipalities. Its offerings include personal and business banking, residential and commercial real estate loans, multi-family and mixed-use loans, construction and development loans, and various deposit products.

While numerous regional banks have faced significant challenges amid the ongoing banking crisis, New York Community Bancorp has demonstrated remarkable resilience. This is evident in the remarkable performance of its share price, which has remained steadfast in comparison to its counterparts in the industry. This likely explains Dr. Burry’s decision to go long on this banking player.

New York Community Bancorp generated about $1.0 billion in free cash flow last year, implying a double-digit free cash flow yield at the stock’s current price levels.

The stock is Scion Asset Management’s fourth largest holding, making up around 9% of its equity portfolio.

Capital One Financial Corporation (COF)

Capital One Financial Corporation is a leading American bank holding company specializing in credit cards, auto loans, banking, and savings accounts. With headquarters in McLean, Virginia, the company operates primarily in the United States, although it has expanded its services globally. Capital One is widely recognized for its diverse range of financial products and services, cutting-edge technology, and strong customer focus.

Shares of Capital One have plummeted in recent months as a result of an ongoing crisis regional banks have been experiencing. The crisis emerged as a consequence of various elements, encompassing the swift surge in interest rates that led to significant drops in the market worth of Treasury bonds and government-backed mortgage securities held by regional banks. Additionally, high levels of uninsured deposits, regulatory rollbacks, and insufficient oversight by the US Federal Reserve further contributed to the turmoil.

Dr. Burry’s decision to invest in Capital One following this event is likely a vote of confidence for the company, suggesting he believes the market may have oversold the stock in recent months. The stock appears to be trading below its book value as well.

Capital One is Scion Asset Management’s fifth-largest holding, making up around 6.8% of the fund’s equity portfolio.

Final Thoughts

Following the massive triumph he experienced by successfully predicting the subprime mortgage crisis of 2007-2008, Dr. Michael Burry has grown into a living legend in the world of finance. His solemn investing philosophy has resulted in outsized market returns over the past few years, beating the S&P 500 by a wide margin.

While Scion Asset Management’s portfolio lacks diversification, its holdings come with characteristics that reflect Dr. Burry’s principles. Nevertheless, most stocks in the fund seem to be bearing their fair share of risks. Thus, be mindful and conduct your own research before allocating your hard-earned money to any of these names.


Click here to instantly download your free spreadsheet of all Scion Asset Management / Michael Burry holdings now, along with important investing metrics.

Additional Resources

See the articles below for analysis on other major investment firms/asset managers/gurus:

If you are interested in finding more high-quality dividend growth stocks suitable for long-term investment, the following Sure Dividend databases will be useful:

The major domestic stock market indices are another solid resource for finding investment ideas. Sure Dividend compiles the following stock market databases and updates them monthly:

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