Scion Capital Management, the firm founded by Michael Burry, disclosed in a regulatory filing that its top six trades during the first quarter included the sale of its entire stake in Fidelity National Financial Inc. (FNF, Financial), General Dynamics Corp. (GD, Financial) and AEA-Bridges Impact Corp. (IMPX, Financial) and new positions in Booking.com Inc. (BKNG, Financial), Warner Bros. Discovery Inc. (DISCK, Financial) and Alphabet Inc. (GOOGL, Financial).
Burry recognized and invested in the subprime mortgage crisis in 2008, making a large short bet in collateralized mortgage obligations. The “Big Short” investor started Scion in 2013 and has been reporting his holdings in public companies through 13F filings.
As of March, Scion’s $201 million 13F equity portfolio contains 12 stocks, with 10 new positions and a quarterly turnover ratio of 71%. The top four sectors in terms of weight are communication services, health care, technology and consumer cyclical, representing 34.24%, 19.80%, 17.86% and 15.51% of the equity portfolio.
Investors should be aware that13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but they can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.
Fidelity National Financial
Scion sold all 325,000 shares of Fidelity National Financial (FNF, Financial), slicing 22.78% of its equity portfolio. Shares averaged $49.78 during the first quarter; the stock is modestly undervalued based on Friday’s price-to-GF Value ratio of 0.71.
The Jacksonville, Florida-based title insurance company has a GF Score of 88 out of 100 based on a GF Value rank of 10 out of 10, a profitability rank of 9 out of 10, a financial strength rank of 5 out of 10 and a rank of 7 out of 10 for growth and momentum.
Other gurus with holdings in Fidelity National Financial include Glenn Greenberg (Trades, Portfolio)’s Brave Warrior Advisors and Jeremy Grantham (Trades, Portfolio)’s GMO.
General Dynamics
The firm sold all 80,000 shares of General Dynamics (GD, Financial), trimming 22.40% of its equity portfolio. Shares averaged $221.83 during the first quarter; the stock is modestly overvalued based on Friday’s price-to-GF Value ratio of 1.11.
The Reston, Virginia-based aerospace and defense company has a GF Score of 82 out of 100, driven by a rank of 8 out of 10 for profitability and growth despite financial strength ranking just 3 out of 10 and GF Value and momentum ranking between 5 and 6 out of 10.
Other gurus with holdings in General Dynamics include PRIMECAP Management (Trades, Portfolio) and Bill Nygren (Trades, Portfolio)’s Oakmark Fund.
AEA-Bridges Impact
The firm sold all 1,000,100 shares of blank-check company AEA-Bridges Impact (IMPX, Financial), curbing 13.42% of its equity portfolio. Shares averaged $9.90 during the first quarter; the stock does not have enough data to compute a GF Value.
Booking.com
Scion invested in 8,000 shares of Booking.com (BKNG, Financial), giving the position 9.33% equity portfolio weight. Shares averaged $2,342.20 during the first quarter; the stock is modestly undervalued based on Friday’s price-to-GF Value ratio of 0.86.
The Norwalk, Connecticut-based travel booking company has a GF Score of 79 out of 100 based on a rank of 8 out of 10 for profitability and momentum, a GF Value rank of 7 out of 10, a financial strength rank of 6 out of 10 and a growth rank of 3 out of 10.
Other gurus with holdings in Booking.com include Dodge & Cox and Baillie Gifford (Trades, Portfolio).
Warner Bros. Discovery
Scion purchased 750,000 Class C shares of Warner Bros. Discovery (DISCK, Financial), giving the position 9.30% equity portfolio weight.
Shares averaged $27.24 during the first quarter; the stock is significantly undervalued based on Friday’s price-to-GF Value ratio of 0.68.
The New York-based media company has a GF Score of 75 out of 100 based on a growth rank of 10 out of 10, a profitability rank of 9 out of 10, a GF Value rank of 8 out of 10 and a financial strength rank of 5 out of 10. However, the stock does not have enough data to compute a momentum rank and, thus, the GF Score may not give a complete picture of a stock’s potential.
Alphabet
Scion purchased 6,500 Class A shares of Alphabet (GOOGL, Financial), allocating 8.98% of its equity portfolio to the position. Shares averaged $2,715.99 during the first quarter; the stock is modestly undervalued based on Friday’s price-to-GF Value ratio of 0.80.
The Mountain View, California-based online search giant has a GF Score of 100 out of 100, driven by a rank of 10 out of 10 for profitability, growth and momentum and a rank of 9 out of 10 for financial strength and GF Value.
