Michael Burry’s Scion Asset Management hedge fund has released trade data for the second quarter of 2023. The prototype of the hero of the movie “The Big Short” (Burry became prototype the hero of the book by Michael Lewis, on which the film was made) made a bet on the fall of the US market and completely got rid of the papers of the largest Chinese retailers – JD.com and Ali Babatestify data 13 F declaration filed with the US Securities and Exchange Commission (SEC).
In total, at the end of the second quarter, the Burry fund had positions in 46 different companies and two positions in derivative financial instruments (options). The fund’s top 10 positions accounted for 97.09% of the total portfolio value, which was $1.73 billion as of June 30, 2023.
According to data The WhaleWisdom service that tracks the operations of the largest US funds, the largest share in the portfolio of Michael Burry as of June 30, 2023 is occupied by put options on the shares of the SPDR S&P 500 ETF Trust fund (51.05%). Also, put options on securities of the Invesco QQQ ETF, which tracks the dynamics of the NASDAQ-100 technology index (42.54%), have a large share in the portfolio of Scion Asset Management. Thus, put options against the US stock market at the end of the second quarter accounted for 93.59% of the total portfolio of the fund.
optional path (path) gives the buyer the right to sell an asset at a fixed price on or before a specified date. The seller is obligated to accept the delivered underlying asset if the buyer wants to exercise the option. By purchasing such an option, a trader or investor takes a short position – short, that is, puts on the fall of an asset and wants to make money on it.
Call option (call) gives the buyer the right to purchase an asset at a fixed price on or before a predetermined date, and creates an obligation for the seller to sell it upon request. When buying such an option, a trader or investor takes a long position – long. It is opened in the hope of making money on an increase in the price of an asset, such as a stock.
According to the financial statement for the second quarter, hedge fund Scion Asset Management completely got rid of the shares of 15 companies. The following transactions were the largest sales:
250k shares of Chinese online retailer JD.com;100k shares of Chinese online retailer Ali Baba;100 thousand shares of the video service Zoom Video Communications;75 thousand bank shares Capital One;800,000 shares of a South African mining company Sibanye-Stillwater.
According to declarations according to the results of the first quarter of 2023, the Chinese companies JD.com and Alibaba occupied the largest share in the fund’s portfolio: previously, in total it amounted to 19.82% of the total value of assets managed by Scion. Also Burry got rid of the shares of banks Wells Fargo, Western Alliance and First Republic Bank, energy companies Cottera, Nov, Devon Energy and others.
Investment fund opened 27 new positions, including large put options on large US ETFs. Among the most notable acquisitions was the purchase of the following instruments:
2 million put options on fund shares SPDR S&P 500 ETF Trust (51.05% of the portfolio). The total value of the position at the end of the second quarter was $886.56 million; 2 million put options on the fund’s securities Invesco QQQ ETF (42.54% of the portfolio). The total value of the position at the end of the second quarter was $738.84 million; 100 thousand shares of a travel company Expedia Group (0.63% of the portfolio). The total value of the position at the end of the second quarter was $10.93 million; 25 thousand shares of a communications company Charter Communications (0.53% of the portfolio). The total value of the position at the end of the second quarter was $9.18 million; 55 thousand shares of the electric power company Generac Holdings (0.47% of the portfolio). The total position value at the end of the second quarter was $8.2 million.
The Fund also acquired shares in CVS Health, one of the largest prescription drug providers in the United States, hospitality and entertainment company MGM Resorts, telecommunications conglomerate Warner Bros. Discovery and others.
Scion Asset Management significantly increased the share in shares of companies:
Cigna — increased the position by 2.5 thousand shares (0.44% of the portfolio after increasing the position);GEO Group — increased the position of 200 thousand shares (0.25% of the portfolio after increasing the position);RealReal — increased the position of 815,558 shares (0.19% of the portfolio after increasing the position).
In addition, the fund reduced positions in the securities of the jewelry retailer Signet Jewelers (sale of 40 thousand shares, up to 0.32% of the portfolio), shares of the communications company Liberty Latin America (sale of 350 thousand shares, up to 0.22% of the portfolio), as well as holding shares New York Community Bancorp (sale of 650 thousand shares, up to 0.13% of the portfolio).
2023-08-14 19:25:22
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