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- Famed investor Michael Burry, who was portrayed by Christian Bale in “The Big Short,” added four new positions to his top five holdings at Scion Asset Management in the second quarter, according to a 13F filed with the SEC last week.
- Burry’s top holding is a massive bet on Alphabet, via call options, which makes up 36% Scion’s total long portfolio, according to the filing.
- Burry’s Scion Asset Management had $386.9 million in assets under management as of March 27. Its portfolio value as of June 30 stood at $315.3 million.
- Here are the top five holdings of Michael Burry’s Scion Asset Management in the second quarter.
- Visit Business Insider’s homepage for more stories.
Michael Burry is finding value in technology stocks, according to his firm’s most recent 13F filed with the Securities and Exchange Commission last week.
Scion Asset Management disclosed four new positions that made it into the top five portfolio holdings of the fund, and two of the names are large-cap technology stocks.
Burry is a famed value investor who was portrayed by Christian Bale in “The Big Short.” Burry was early to spot issues in the housing market in the mid-2000s and bet big on its collapse via credit default swaps. The trade eventually paid off big during the Great Recession of 2008 and 2009.
Burry’s Scion had a portfolio valued at $315 million as of June 30, according to 13F filings.
The investor made some big changes to the portfolio in the second quarter, as evidenced by his top five holdings.
Gamestop, a position that has mostly traded sideways throughout 2020, is no longer Burry’s top holding as it was last quarter. Instead, that title goes to Alphabet, parent company of Google. Burry now has 36% of Scion’s assets invested in Alphabet call options, representing a concentrated bet on a single company.
A call option is a contract that gives the buyer the right to buy a specific stock at a specific strike price, within a predetermined amount of time. Call options are typically bought by investors who believe the underlying stock is poised to move higher.
Here are the top five holdings of Scion Asset Management as of June 30.
Burry sold 8% of his Gamestop position in the quarter, and now owns 2.75 million shares, worth $11.9 million as of June 30. Burry initially revealed his Gamestop stake in late 2019. Gamestop now represents 3.79% of Scion’s assets.
4. Goldman Sachs (Call)
A call option position in Goldman Sachs was new to the portfolio in the second quarter and has a total value of $14.5 million, representing 4.6% of Scion’s portfolio. Goldman has suffered like many banks amid the COVID-19 pandemic, and is often viewed as a value stock given its current forward price-earnings ratio of 8.77x, representing a significant discount to the S&P 500.
3. Booking Holdings (Call)
A call option position in Booking Holdings was new to the portfolio in the second quarter and has a total value of $18.47 million, representing 5.86% of Scion’s portfolio. Booking Holdings is an “epicenter stock” that has been hard hit by a sharp decline in travel due to the COVID-19 pandemic. Burry may be placing a bet that there will be pent-up demand for travel once consumers feel it is safe to travel again.
2. Facebook (Call)
A call option position in Facebook was new to the portfolio in the second quarter and has a total value of $21.1 million, representing 6.7% of Scion’s portfolio. Facebook is often viewed as a value stock relative to its large-cap tech peers given its current forward price-earnings ratio of 26x.
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1. Alphabet (Call)
A call option position in Alphabet was new to the portfolio in the second quarter and has a total value of $113.1 million, representing a massive 35.9% of Scion’s portfolio. While the strike price and expiry date of the options purchased are unknown, the position signals that Burry sees value in the search and online-advertising giant. Google currently trades at a forward price-earnings ratio of 27.5x.
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