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.”
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. (NYSE:OVV) to $50, while keeping a Buy rating on the shares.
The number of hedge funds tracked by Insider Monkey having stakes in Ovintiv Inc. (NYSE:OVV) 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. (NYSE:OVV) 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. (NYSE:OVV) 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. (NASDAQ:DISCA) 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. (NASDAQ:DISCA), 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. (NASDAQ:DISCA) 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. (NYSE:WMT) 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. (NYSE:WMT), 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 (NYSE:MCK) 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 (NYSE:MCK) 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
