In this article, we discuss the newest stocks in Michael Burry’s portfolio.
Michael Burry made his name during the financial crisis of 2008 by making profits during a time when most of his peers suffered heavily. Born in California, Burry is an American investor, physician, and hedge fund manager. Currently, he manages Scion Asset Management, which he founded in 2013.
Scion Asset Management mainly invests in services, technology, finance, and consumer goods sector as of Q2. The fund has a portfolio value of over $2 billion, up from $1.3 billion in the previous quarter. Some of the notable stocks in Burry’s portfolio include Facebook, Inc. (NASDAQ:FB), Alphabet Inc. (NASDAQ:GOOG), Walmart Inc. (NYSE:WMT), and The Kraft Heinz Company (NASDAQ:KHC). In this article, we will focus on the newest additions in the investor’s portfolio.
Our Methodology:
Let’s analyze our list of the newest stocks in Michael Burry’s portfolio. The stocks mentioned below have been added to Scion Asset Management’s 13F portfolio in Q1 and Q2 of 2021.
Michael Burry of Scion Asset Management
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Michael Burry Stock Portfolio: 10 Newest Additions in 2021
10. Vy Global Growth (NYSE:VYGG)
Scion Asset Management’s Stake Value as of Q2: $1,438,000
Percent of Scion Asset Management’s 13F Portfolio: 0.06%
Number of Hedge Fund Holders: 35
Vy Global Growth (NYSE:VYGG) is a blank check company that went public last year and aims to acquire technology businesses. In Q2 2021, Scion Asset Management bought 144,550 shares in the company, valued at over $1.4 million.
As of Q2 2021, 35 hedge funds tracked by Insider Monkey have positions in Vy Global Growth, valued at $281.4 million.
Weiss Asset Management is the leading shareholder of Vy Global Growth, with shares worth $31.5 million.
9. Golden Ocean Group Limited (NASDAQ:GOGL)
Scion Asset Management’s Stake Value as of Q2: $7,728,000
Percent of Scion Asset Management’s 13F Portfolio: 0.37%
Number of Hedge Fund Holders: 15
Golden Ocean Group Limited (NASDAQ:GOGL), a Bermuda-based bulk shipping company, reported a 137% growth in revenue in Q2 2021, at $275.5 million.
This September, HC Wainwright initiated its coverage on Golden Ocean Group Limited with a Neutral rating and a $13 price target.
Scion Asset Management bought 530,000 shares in Golden Ocean Group Limited in Q1 2021, valued at $3.5 million. The hedge fund increased its stake in the company by 33%, buying an additional 170,000 shares in Q2, taking the total to 700,000 shares, worth $7.7 million.
As of Q2 2021, 15 hedge funds tracked by Insider Monkey have positions in Golden Ocean Group Limited, valued at $133.3 million. In the previous quarter, 11 hedge funds had stakes in the company, worth $62.1 million.
Like Tesla, Inc. (NASDAQ:TSLA), Facebook, Inc., Alphabet Inc., Walmart Inc., and The Kraft Heinz Company, Golden Ocean Group Limited is also one of the notable stocks to invest in.
8. Marinus Pharmaceuticals, Inc. (NASDAQ:MRNS)
Scion Asset Management’s Stake Value as of Q2: $11,213,000
Percent of Scion Asset Management’s 13F Portfolio: 0.53%
Number of Hedge Fund Holders: 13
Marinus Pharmaceuticals, Inc. (NASDAQ:MRNS) is a clinical-stage biopharmaceutical company that develops Ganaxolone, a drug used to treat seizures. In August, the company’s Phase 2 study of Ganaxolone reported 16.6% seizure reduction and was noted as ‘impressive’ by Truist’s analyst Joon Lee, who lifted the firm’s price target on Marinus Pharmaceuticals, Inc. to $40, while keeping a Buy rating on the shares.
Lion Point is the largest shareholder of Marinus Pharmaceuticals, Inc., with over 3.6 million shares. Overall, 13 hedge funds reported owning stakes in the company in Q2, valued at $243.3 million.
Scion Asset Management started building its position in Marinus Pharmaceuticals, Inc. in Q1 2021, with shares worth $4.6 million. In Q2, the hedge fund increased its position in the company by 111%, owning 625,000 shares, valued at $11.2 million. Marinus Pharmaceuticals, Inc. represents 0.53% of the hedge fund’s 13F portfolio.
Like Tesla, Inc., Facebook, Inc., Alphabet Inc., Walmart Inc., and The Kraft Heinz Company, Marinus Pharmaceuticals, Inc. is also one of the notable stocks in 2021.
7. Scorpio Tankers Inc. (NYSE:STNG)
Scion Asset Management’s Stake Value as of Q2: $13,230,000
Percent of Scion Asset Management’s 13F Portfolio: 0.63%
Number of Hedge Fund Holders: 20
Scion Asset Management bought stakes in the Monaco-based tanker shipping company, Scorpio Tankers Inc. (NYSE:STNG), in Q1, valued at $3.5 million. In Q2, the hedge fund bought additional 409,900 shares in the company, increasing its position by 216%. These stakes are valued at over $13.2 million. Scorpio Tankers Inc. represents 0.63% of Scion Asset Management’s 13F portfolio.
6. CVS Health Corporation (NYSE:CVS)
Scion Asset Management’s Stake Value as of Q2: $16,688,000
Percent of Scion Asset Management’s 13F Portfolio: 0.8%
Number of Hedge Fund Holders: 67
In Q2 2021, Harris Associates is the largest shareholder of CVS Health Corporation (NYSE:CVS) with shares worth $713 million. The hedge fund sentiment was positive for the company in Q2, as 67 hedge funds tracked by Insider Monkey have stakes in CVS Health Corporation, up from 61 in the previous quarter. The total value of these stakes is $1.35 billion.
CVS Health Corporation was Morgan Stanley’s top pick in the Healthcare Services and Distribution segment for the rest of 2021. In September, the firm lifted its price target on CVS Health Corporation to $114, while keeping an Overweight rating on the shares.
Scion Asset Management bought 110,000 shares in CVS Health Corporation in Q1, with an estimated average price of $72.86 per share. In Q2, the hedge fund increased its activity in the company by 82%, and now owns 200,000 shares in the company, valued at $16.6 million. CVS Health Corporation accounts for 0.8% of the fund’s 13F portfolio.
ClearBridge Investments mentioned CVS Health Corporation in its Q2 2021 investor letter. Here is what the firm has to say:
“Our differentiated positions in the health care sector also made strong contributions as the market began to reward the heavily discounted sector.CVS Health saw strength in its pharmacy benefits manager business as well as its managed care business, Aetna, helping to confirm our positive view of CVS’s repositioning of its business model from a dispensary model to a service model. With CVS store-based health care services offering patients better convenience, encouraging better health care compliance and ultimately lower costs, we believe the company is at the forefront of a changing mindset in the health care services sector.”
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. 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., 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. 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.”
4. Ovintiv Inc. (NYSE:OVV)
Scion Asset Management’s Stake Value as of Q2: $18,882,000
Percent of Scion Asset Management’s 13F Portfolio: 0.9%
Number of Hedge Fund Holders: 40
Ovintiv Inc. (NYSE:OVV), a Canada-based natural gas company, ranks fourth on our list of the newest stocks in Michael Burry’s portfolio. Neal Dingmann of Truist sees a potential upside in the company, driven by the generation of free cash flow in the coming quarters. The firm lifted its price target on Ovintiv Inc. to $50, while keeping a Buy rating on the shares.
The number of hedge funds tracked by Insider Monkey having stakes in Ovintiv Inc. grew to 40 in Q2 2021, from 30 in the previous quarter. The total value of these stakes is $739.2 million. On July 27, Ovintiv Inc. announced a 49% increase in its quarterly dividend at $0.14 per share, yielding 2.06%.
Scion Asset Management bought 600,000 shares of Ovintiv Inc. in Q2, valued at $18.8 million. The company represents 0.9% of the hedge fund’s 13F portfolio.
3. Discovery, Inc. (NASDAQ:DISCA)
Scion Asset Management’s Stake Value as of Q2: $24,780,000
Percent of Scion Asset Management’s 13F Portfolio: 1.19%
Number of Hedge Fund Holders: 44
Discovery, Inc. (NASDAQ:DISCA) stands third on our list of the newest stocks in Michael Burry’s portfolio. Founded in 1985, it is an American mass media company. Scion Asset Management started building its position in Discovery, Inc. in Q2, with 855,084 shares, worth $24.7 million. The company accounts for 1.19% of the hedge fund’s 13F portfolio.
As of Q2 2021, 44 hedge funds tracked by Insider Monkey reported having stakes in Discovery, Inc., compared with 48 in the previous quarter. The total value of these stakes is $587.8 million. D E Shaw is the company’s leading shareholder, with shares worth $165 million.
Smead Capital Management mentioned Discovery, Inc. in its Q2 2021 investor letter. Here is what the firm has to say:
“We were most negatively affected by Discovery’s (DISCK) stock backing off from their meme-stock fame of the first quarter. Their share price then weakened further by announcing a merger with Warner Media to aggregate the best of unscripted TV shows with the best of sports and scripted TV and movies.”
2. Walmart Inc. (NYSE:WMT)
Scion Asset Management’s Stake Value as of Q2: $53,390,000
Percent of Scion Asset Management’s 13F Portfolio: 2.56%
Number of Hedge Fund Holders: 71
Walmart Inc. ranks second on our list of the newest stocks in Michael Burry’s portfolio. In Q2, the company represented a positive hedge fund sentiment, as 71 hedge funds tracked by Insider Monkey reported owning stakes in Walmart Inc., up from 58 in the previous quarter. The total worth of these stakes is over $8.04 billion.
In Q2, Scion Asset Management owned CALL options on 378,600 shares in the company, valued at $53.3 million. The retailer accounts for 2.56% of the hedge fund’s 13F portfolio.
1. McKesson Corporation (NYSE:MCK)
Scion Asset Management’s Stake Value as of Q2: $130,502,000
Percent of Scion Asset Management’s 13F Portfolio: 6.26%
Number of Hedge Fund Holders: 51
McKesson Corporation (NYSE:MCK) tops our list of the newest stocks in Michael Burry’s portfolio. In Q2, Scion Asset Management owned CALL contracts on 682,400 shares of the company, valued at $130.5 million. The company represents 6.26% of the hedge fund’s 13F portfolio.
McKesson Corporation is an American healthcare company that utilizes health technology for its operations. On July 26, the company increased its dividend by 12% at 0.47 per share, yielding 0.93%.
Broyhill Asset Management mentioned McKesson Corporation in its Q2 2021 investor letter. Here is what the firm has to say:
“Analysts continued ratcheting up full-year earnings estimates for McKesson (MCK) driving the stock steadily higher. Despite strong year-to-date gains, shares of the company are trading at lower valuations today than before the pandemic as earnings estimates have outpaced their rising stock prices… The story is similar at McKesson where vaccine distribution should continue to provide upside to consensus estimates. Although investors have been hesitant to give the company full credit for today’s “temporary” profits, we think these “temporary” COVID-tailwinds may turn out to be not so temporary. If we are wrong, we believe downside is limited given recent activist involvement and management’s decision to pursue a strategic review to capture the full value of the company’s drug development business.”
You can also take a look at 10 Best Cheap Stocks to Buy According to Michael Burry and 10 Best Stocks to Buy According to Michael Burry
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This article is originally published at Insider Monkey.
