Michael Burry Stock Portfolio: 5 Newest Additions in 2021

In this article, we discuss the 5 newest stocks in Michael Burry’s portfolio. If you want to read our detailed analysis of Michael Burry’s hedge fund and its returns, go directly to see Michael Burry Stock Portfolio: 10 Newest Additions in 2021.

5. The GEO Group, Inc. (NYSE:GEO)

Scion Asset Management’s Stake Value as of Q2: $17,800,000
Percent of Scion Asset Management’s 13F Portfolio: 0.85%
Number of Hedge Fund Holders: 15

The GEO Group, Inc. (NYSE:GEO) is an American real estate investment trust company that mainly invests in mental health facilities. Michael Burry’s Scion Asset Management started building its position in The GEO Group, Inc. (NYSE:GEO) in Q2 2021, with 2.5 million shares, valued at $17.8 million. The company accounts for 0.85% of the hedge fund’s 13F portfolio.

Along with Scion Asset Management, Mason Capital Management is one of the largest shareholders of The GEO Group, Inc. (NYSE:GEO), with over 2 million shares. Overall, 15 hedge funds tracked by Insider Monkey have stakes in the company in Q2, up from 13 in the previous quarter. The total value of these stakes is $74.5 million.

Miller Value Partners mentioned The GEO Group, Inc. (NYSE:GEO) in its Q1 2021 investor letter. Here is what the firm has to say:

“GEO Group (GEO) declined 9.8% during the period as President Biden’s Executive Order directing the Department of Justice not to renew contracts with private prisons at the Federal level offset solid Q4 results. GEO reported Q4 revenue of $578.1M, in-line with consensus while EBITDA of $107.9M topped estimates of $87.7M by 23%. Adjusted Funds from Operations (AFFO) of $0.62/share fell 6% Y/Y and provided coverage of 2.5x on the quarterly dividend of $0.25/share (13.5% annualized yield). The company exited the quarter with ample liquidity of $420M and remains committed to paying down $75M-$100M of debt annually. Management introduced 2021 guidance with revenue of $2.24Bn-$2.27Bn, EBITDA of $386M-$400M, and AFFO of $1.98-$2.08, all of which assumes Bureau of Prison contracts with optional expiration periods in 2021 will not be renewed. Additionally, GEO announced a $200M convertible notes offering due 2026 with net proceeds funding the redemption of the 5.875% unsecured notes due 2022.”