3-Year Annualized Return 3-Year Cumulative Return Rank Compared to other Funds; Top 20 Holdings Weighted Performance vs S&P500. var iO = ['io_15ca64a9c167c7','358','300','250']; We won't send you spam. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. In October 2005, Michael had officially told all of his investors what he was doing (not that it was much of a secret). This was unlike any other hedge fund. As you are aware, Scion Capital does not charge a quarterly asset-based fee and instead relies entirely on its performance as your manager. Auvergne-Rhne-Alpes, rgion of east-central France created in 2016 by the union of the former rgions of Auvergne and Rhne-Alpes. Cookie Notice My articles typically cover macroeconomic trends, portfolio strategy, value investing, and behavioral finance. By mid-2007, Bear Stearns and Goldman Sachs were falling apart in front of everyone. Put your skills to the test with the Trader Career Path, our funding evaluation designed for traders to prove their skills and build a trading career. Historical performance of Scion Asset Management, showing the return on investment of the portfolio managed by Michael Burry and comparing it to other hedge funds. . To maintain his position, he let go of some of his staff and a fraction of his positions. Scion Asset Management manages $291.7 million and provides investment advisory services for 4 clients (1 advisor/client ratio). I do expect that the options will be exercised within the next year or so, and that both White Mountains and Gotham Capital V will become full non-managing members of Scion Capital, LLC. No wonder Mr. Burry didnt like people. even became disgusted with medicine at times. Currently, he manages Scion Asset Management, which he founded in 2013. All rights reserved. The returns may vary slightly, however, due to different expense ratios. Disclaimer: Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. This did not stop clients from complaining heavily. Another position, Tailored Brands (TLRD), formerly The Mens Wearhouse, remains mired near year-end levels. 915 481 Sipes Cliff, New Gonzalobury, CO 80176, Hobby: Gaming, Jogging, Rugby, Video gaming, Handball, Ice skating, Web surfing. How long can you stay in Aruba If you own property? Burry seems to be hedging his short exposure to Tesla by buying call options on Facebook and Google, which make him closer to market-neutral. Loading. He owed $145,000 in student debts by comparison. Burrys Scion sold all Gamestop shares in Q4 before GME went stratospheric, 13F filing shows. Michael Burry described his style as Ick investing. Burry described this as follows: Ick investing means taking a special analytical interest in stocks that inspire a first reaction of ick. -Burry, in a 2001 letter to his investors. Copyright 2021 ValueWalkPremium. Investors react to every move they make. From the end of September 2021 through Feb. 18, the drugmaker's stock returned 14.2%, compared to a 1.0% return for the S&P 500. But Burry, who has Asperger syndrome, struggled with client interaction after his huge success, and shut down Scion Capital in 2008 to focus on private investing. The credit-default swap was a zero-sum game. How Charlie Ledley and Jamie Mai turned $110,000 into almost $130 million. to see the full transaction history. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. If you require advice in relation to any financial matter you should consult an appropriate professional. And there were tremendous devaluations in widely held issues over the course of November as well as December. Skywest Inc. (US:SKYW) Guys I went to school with bet thousands of dollars on Tesla calls last year, saying things like "Elon Musk is the man and no one can stop him," and "we're going to the moon," without any real fundamental analysis. While it has not been my observation that the Fund experiences undue volatility on a daily basis, there can be no certainty of this trend continuing. Finally, no member will owe taxes on this years profits, as a small tax-loss is built into the aforementioned gain. and our 2023 Investguiding. Kenneth Griffin's Citadel Advisers Read More, PharmaCielo: 100% Downside on Co-Founders History of Securities Fraud Allegations, Numerous Undisclosed Related Party Transactions and Operational Failures The S&P 500 returned about 3% over the same period. 2003 the market went up again, by 28%; Scion was up 50%. The next level came in the form of credit default swaps (CDSs). document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); He quickly noticed people were following his blog more and more. Michael Burry made a name for himself during the financial crisis. By Julys end, reports were popular about those who saw the subprime crash coming. He was coming to terms with the truth that although he wanted to help people, he did not like dealing with them personally. Here you can find the latest trades based on Burry's 13F filings and insider trades. Bladwin, a Honolulu-based providers of shipping services in the Pacific. By comparison, shorting Treasuries seems like a no-brainer. He penned three letters to the video game retailer's bosses, urging them to buy back shares and clean up their act. While striking, these statistics likely do little justice to the potential risk for those investors holding concentrated portfolios. The IRR is equivalent to the Compound You can buy shares of companies that produce water-related equipment, such as pumps, meters and filters, invest in water utilities and environmental companies that clean, purify or distribute water. ownership team . Scion Capital is closing its dedicated Asian investment funds and returning capital to investors in those funds. It could take this bet into the billions of dollars. According to WhaleWisdom.coms Backtester, the long portion of Michael BurreyScion Asset Managements portfolio is up 28.8% year-to-date vs 10.1% for the S&P 500 Total Return Index. A CDS is essentially insurance on a loan. You can also buy stocks of commodity-related businesses such as oil and gas producers or miners of precious metals. I or my affiliates may hold positions in securities mentioned in the article. 24. For the Scion Value G7 fund, however, the firm requires a minimum account size of $500,000. Joel told him he had been waiting for him to leave medicine and invited Michael and his wife to come to New York to meet. I fully expect the expense ratio to which you are exposed to decrease quite significantly in response to increased assets under management as these and other potential investors become members of the Fund. Rather, I prefer to look at specific investments within the inefficient parts of the market. How much is Scion asset management worth? Burry bought a stake in GameStop in 2019 because he determined the stock was undervalued. 1. Business titans such as William Boeing and Walter Chrysler actually grew their fortunes during the Great Depression. The oldest part of the city, cramped between the river and the mountains, lies on the right bank; the major part . The interest that dominated his early life was the study of medicine. I've offered up a hypothesis for the crazy rally: I wrote in March that Wall Street drove up the price to hustle billions of dollars from S&P 500 index funds which would be forced to buy Tesla back from them in the index inclusion (and the higher they drove the stock, the more the index would have to buy), just as they did with Yahoo stock a little over 20 years prior. If it does, the trader can buy the shares back at the lower price, return them to the brokerage and keep the difference as profit. As a result, I would argue that it is the lack of a loss in a month like November that represents the most reproducible and the most potent characteristic of the Fund. The collapse of the real estate market in 2008 was a key event leading to the global financial crisis. The Fund provided a total return of 36.01% for the 2012 calendar year when including dividends. Looks like another deep-value play. This is a large percentage, especially when you consider that the S&P had fallen by about 12% that year. How did Michael Burry predict the housing market? There are two main drivers of the Funds expense ratio, which is expressed as a percentage of assets under management. He tells Bloomberg that he is buying land, gold, and the stocks of small technology companies in China. Id have to dig it up, but it's on YT somewhere. What happened? . The main accomplishment of the Fund, in my opinion, was not grossing 8.24% in two months but rather avoiding such debilitating devaluations as affected the indices and many widely held stocks during that month. JD.com Inc - ADR (US:JD) Michael Burry's Scion buys $10M stake in electric motorcycle-linked SPAC in Q4, Banking Essentials Newsletter: 5th May Edition, IR In Focus | Episode 4: Insights to Navigate Investor Activism, Masters of Risk | Episode 2: A Discussion with Ilya Khaykin, Practical steps to achieve net-zero underwriting Set a baseline, define targets and take action. Regards! Burry is cleaning up here again, with Treasury yields moving to the upside by a landslide and prices falling. Heatmaps of the top 13f holdings and a list of the largest trades made by Scion Asset Management, the hedge fund managed by Michael Burry. 23. After some discussion, separate agreements were made with both parties whereby a family trust and I would option portions of our interests in the management company to these parties. All rights reserved. The movie version came out in 2015, and Michael Burry was portrayed by Christian Bale. The Ulcer Index a Measure of Downward Volatility, Paul Rotter Career, Life, and Net Worth All You, Mastering Trading Psychology: The Key to Long-Term Succ, Victor Sperandeo Career, Life and Net Worth All, How to Use the McClellan Oscillator: A Step-by-Step Gui, Day Trading Discord 10,000 User Milestone Givea, Ultimate Guide to Velocity Logic: Understanding its Rol, Mark Minervini Career, Life and Net Worth All Y, Understanding Front-Month Contracts: A Comprehensive Gu, What is MACD? The stock trades for half of listed book value. Burry has bet big in the past and been vindicated, most notably when shorting the housing market in the 2000s. Reddit and its partners use cookies and similar technologies to provide you with a better experience. Every dollar saved amounts to the same two dollars in excess gain already realized. The option agreements, now consummated by premiums paid, give Gotham Capital V, LLC the 5-year option to acquire 22.50% of the management company and give White Mountains the option to acquire up to 15.44% of the management company. He did end up gaining his fame after all, though. Scion Asset Management, LLC Portfolio Never miss a trade. Burry retired his fund, Scion Capital, in 2008 after his early recognition and short of the subprime lending market that virtually nobody had understood for years proved correct. Does anyone have, or know where to look for, hard numbers on his career history? Yes, in all periods since the 1950s But for the unwieldy nature of such a term, fund of well-conceived investments might make an apt handle. Take the first step towards your new trading career today, Paul Rotter Career, Life, and Net Worth All You Need To Know, Victor Sperandeo Career, Life and Net Worth All You Need to Know, Mark Minervini Career, Life and Net Worth All You Need to Know, Timothy Sykes: Career, Life, and Net worth All You Need to Know.
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