Michael Burry's Portfolio

MICHAEL BURRY'S SCION ASSET MANAGEMENT Q4 2023 PORTFOLIO

Scion Asset Management, a hedge fund managed by Michael Burry, disclosed 25 security holdings in their SEC 13F filing for the fourth quarter of 2023, with a total portfolio value of $94,592,000

 

Top 10 Holdings

As of  31 December, 2023, Michael Burry’s Scion Asset Management’s top 10 holdings were:

  1.           Alibaba Group Holdings (BABA) – 6.15% of the portfolio

Recent Activity: Added 50.00%

Shares: 75,000

Reported Price: $77.51

Value: $5,813,000

2.             JD.com Inc. (JD) – 6.11% of the portfolio

Recent Activity: Added 60.00%

Shares: 200,000

Reported Price: $28.89

Value: $5,778,000

3.             HCA Healthcare Inc. (HCA) – 5.72% of the portfolio

Recent Activity: Buy

Shares: 20,000

Reported Price: $270.70

Value: $5,414,000

4.             Oracle Corp. (ORCL) – 5.57% of the portfolio

Recent Activity: Buy

Shares: 50,000

Reported Price: $105.44

Value: $5,272,000

 

5.             Citigroup Inc. (C) – 5.44% of the portfolio

Recent Activity: Buy

Shares: 100,000

Reported Price: $51.44

Value: $5,144,000

6.             CVS Health Corp. (CVS) – 5.43% of the portfolio

Recent Activity: Buy

Shares: 65,000

Reported Price: $78.95

Value: $5,132,000

7.             Nexstar Media Group (NXST) – 5.39% of the portfolio

Recent Activity: Reduced 33.20%

Shares: 32,500

Reported Price: $156.74

Value: $5,094,000

8.             Alphabet Inc. (GOOGL) – 5.17% of the portfolio

Recent Activity: Buy

Shares: 35,000

Reported Price: $139.69

Value: $4,889,000

9.             Star Bulk Carriers Corp. (SBLK) – 4.95% of the portfolio

Recent Activity: Reduced 11.92%

Shares: 220,208

Reported Price: $21.26

Value: $4,682,000

10.         Amazon.com Inc. (AMZN) – 4.82% of the portfolio

Recent Activity: Buy

Shares: 30,000

Reported Price: $151.93

Value: $4,558,000 

 

Portfolio Overview:

Chinese Tech Giants:

Alibaba Group Holdings (BABA) and JD.com Inc. (JD) are Burry’s top holdings, making up 6.15% and 6.11% of the portfolio, respectively. He increased his positions significantly in both companies (50% in BABA and 60% in JD), which indicates a strong bullish stance on Chinese tech.

Healthcare and Technology:

HCA Healthcare Inc. (HCA) and Oracle Corp. (ORCL) are new buys, suggesting confidence in the healthcare sector and enterprise software solutions.

Financial Sector:

 

Citigroup Inc. (C) is also a new addition to Burry’s portfolio, representing his bet on the banking sector’s recovery.

 

Media and Entertainment: 

CVS Health Corp. (CVS), Warner Bros. Discovery Inc. (WBD), and MGM Resorts International (MGM) show Burry’s interest in health services, media, and entertainment sectors.

 

Tech and E-Commerce:

Alphabet Inc. (GOOGL) and Amazon.com Inc. (AMZN) purchases align with Burry’s tech-heavy strategy, banking on the long-term growth of these giants.

 

 

Under the Radar:

Advance Auto Parts (AAP), Vital Energy Inc. (VTLE), Block Inc. (SQ), and Toast Inc. (TOST) are smaller, yet notable additions that indicate a diverse interest in automotive parts, energy, financial technology, and software.

 

Conclusion:

Michael Burry’s Q4 2023 stock holdings reveal a strategic approach to investing, with a focus on tech giants, healthcare, and financial sectors.

 

Company overview 

Alibaba Group Holdings (BABA)

 

An e-commerce giant based in China, Alibaba offers a diverse range of services, including retail, technology, and financial services through its subsidiary, Ant Group. Burry’s investment could be a play on China’s growing consumer market and the company’s strong foothold in e-commerce and cloud computing.

 

JD.com Inc. (JD)

 

Another leading e-commerce company in China, JD.com has a robust logistics network and is investing heavily in technology, including automation and AI. By increasing his stake, Burry may be betting on the continued growth of online retail in China and JD’s competitive position in the market.

 

HCA Healthcare Inc. (HCA)

 

As one of the leading healthcare services providers in the U.S., HCA operates hospitals, surgery centers, and urgent care facilities. Burry’s investment here could be based on the essential nature of healthcare services and the company’s strong market position.

 

Oracle Corp. (ORCL)

 

Oracle is a multinational computer technology corporation that specializes in developing and marketing database software and technology, cloud-engineered systems, and enterprise software products. Burry may see Oracle’s consistent revenue from enterprise software and cloud services as a steady investment.

 

Citigroup Inc. (C)

 

As a global bank, Citigroup offers a range of financial products and services. The investment in Citi might be driven by the valuation metrics, the bank’s global diversification, and its ability to benefit from interest rate hikes.

 

CVS Health Corp. (CVS)

 

CVS Health is an American healthcare company that owns CVS Pharmacy, a retail pharmacy chain, and provides health services. Burry’s interest might stem from the company’s integral role in the U.S. healthcare system, including its expansion into insurance and pharmacy benefits management.

 

Nexstar Media Group (NXST)

 

The largest TV station operator in the U.S., Nexstar Media Group has a significant presence in local news and media. Despite reducing his stake, Burry’s initial investment could be tied to the company’s strong cash flow generation and local advertising revenue.

 

Alphabet Inc. (GOOGL)

 

The parent company of Google, Alphabet has a wide array of products and services with a dominant position in online advertising, search, and cloud services. Burry may be attracted to Alphabet’s continued growth prospects and its resilience in the tech sector.

Star Bulk Carriers Corp. (SBLK)

 

A global shipping company that transports dry bulk cargoes. The investment, albeit reduced, might have been initially attractive due to the cyclical nature of the shipping industry and potential for high returns during peak shipping cycles.

 

Amazon.com Inc. (AMZN)

 

A leader in e-commerce and cloud computing through its Amazon Web Services (AWS), Amazon has a diversified business model with continuous expansion into new markets. Burry’s investment in Amazon could be a long-term play on the company’s growth and market penetration.

 

 

Each of these companies holds a significant position within their respective industries, and Burry’s investments suggest a belief in their enduring value and potential for growth. His stock picks often reflect a mix of value investing principles and strategic bets on sectors poised for recovery or continued expansion.

Analyzing HCA Healthcare Inc. (HCA) Why is Michael Burry investing in HCA ?

Michael Burry’s investment in HCA Healthcare, Inc. (HCA) in Q4 2023 can be analyzed by delving into the company’s financial health, operational efficiency, and market positioning. Here’s an in-depth look at the key financial metrics and ratios that may have influenced his decision:

 

Market Capitalization and Enterprise Value:

 

HCA Healthcare has a substantial market cap of $82.59 billion, indicative of its significant presence in the healthcare sector.

The enterprise value of $123.15 billion exceeds the market cap, factoring in debt and providing a more comprehensive valuation.

Revenue Growth:

 

HCA has demonstrated consistent revenue growth, with a 7.86% year-over-year increase, signaling expanding operations and potentially increasing market share.

Profitability:

 

With a gross margin of 39.37%, HCA Healthcare efficiently manages its cost of goods sold relative to its revenue.

An operating margin of 14.82% and a profit margin of 8.07% showcase the company’s ability to translate revenues into profits despite the capital-intensive nature of the healthcare industry.

 

Cash Flow and Liquidity:

 

A strong operating cash flow of $9.43 billion underlines the company’s solid operational efficiency.

Free cash flow of $4.69 billion offers flexibility for reinvestments, debt reduction, and shareholder returns.

A current ratio of 1.18 and a quick ratio of 0.86 suggest the company is well-positioned to meet short-term obligations.

 

Debt Management:

 

The debt-to-equity ratio is not applicable due to negative shareholder equity; however, the debt-to-EBITDA ratio of 3.5 implies manageable debt levels given the company’s earnings before interest, taxes, depreciation, and amortization.

 

Efficiency Ratios:

 

An asset turnover of 1.2 indicates effective use of assets to generate revenue.

A substantial inventory turnover of 19.27 suggests efficient management of inventory, critical in healthcare operations.

 

Stock Performance and Dividends:

 

An increase of 17.25% in stock price over the past year could be a marker of robust performance and investor confidence.

The company offers a dividend yield of 0.86%, adding an income component to the investment.

 

Return Ratios:

 

A negative ROE of -231.70% is a concern and warrants a deeper look, potentially at non-operating factors that may have influenced this figure.

ROA of 9.70% and ROIC of 18.53% suggest that the company is effective in generating returns from its assets and overall capital.

Valuation Ratios:

 

The PE ratio of 16.27 and forward PE of 16.11 suggest that the stock may be reasonably valued based on its earnings.

The PEG ratio of 1.39 might indicate that the stock’s price is fair relative to its earnings growth potential.

 

Short Interest and Analyst Perspectives:

 

A relatively low short interest of 0.84% of the shares out signals limited bearish sentiment toward the stock.

 

The consensus “Buy” rating from analysts and a price target slightly below the current market price suggests a general optimism about the company’s trajectory with moderate expectations for future stock price appreciation.

Given these financial indicators, Michael Burry’s investment in HCA Healthcare could be predicated on the company’s solid financial foundation, its ability to generate and grow cash flow, and its competent management of resources, all of which are critical components in the value investing philosophy. The combination of reasonable valuation, growth potential, and a stable dividend may present the balanced investment opportunity that aligns with Burry’s strategic investment criteria.

Analyzing Oracle Corporation (ORCL) from Value Investing Perspective

An In-Depth Financial Analysis

 

Oracle Corporation (NYSE: ORCL) stands as a testament to resilient growth and financial prudence, characteristics that align closely with the principles of value investing. With a market capitalization of $297.32 billion and a forward PE ratio of 18.68, Oracle presents an intriguing case for investors seeking long-term value in the technology sector.

Financial Health and Profitability

 

At the forefront of Oracle’s appeal is its solid profitability with a net income of $10.14 billion on revenues of $51.63 billion. The company’s gross margin impressively stands at 71.88%, showcasing its ability to maintain cost-effective operations while scaling revenue. Operating and profit margins of 27.73% and 19.64%, respectively, further underscore a strong command over operational expenses and a consistent delivery of profits to shareholders.

Oracle’s return on equity (ROE) of 829.60% may seem astronomically high and is typically indicative of significant leverage or one-time gains. However, a more normalized figure would be derived by considering average equity over the period rather than end-period snapshots to account for any large fluctuations.

Cash Flow and Debt Management

 

Oracle’s free cash flow (FCF) is a key highlight, with $10.10 billion indicating the company’s ability to generate cash post its capital expenditures. The FCF yield of 3.40% might not seem lofty, but it assures investors of the company’s capacity to support dividends, buybacks, and debt repayments.

 

Speaking of debt, Oracle’s total debt stands at $88.79 billion. While a debt-to-equity ratio of 22.97 might raise eyebrows, a value investor would consider the interest coverage ratio of 3.88 and the debt-to-EBITDA ratio of 4.39. These figures suggest that while Oracle is leveraged, it can comfortably service its debt obligations from its earnings before interest, taxes, depreciation, and amortization (EBITDA).

Valuation Metrics

 

Oracle’s trailing PE ratio of 29.88 might suggest a premium compared to the broader market. However, the forward PE ratio of 18.68 offers a different narrative, hinting at expected growth in earnings. Additionally, the PEG ratio of 1.13 aligns with value investing principles, indicating reasonable stock price growth potential relative to its earnings growth rate.

 

Dividends and Shareholder Returns

 

Oracle’s dividend yield of 1.48% coupled with a payout ratio of 44.20% strikes a balance between returning capital to shareholders and reinvesting earnings for growth. The consistent dividend growth over the years demonstrates Oracle’s commitment to shareholder returns.

 

Market Performance and Outlook

 

The stock’s price appreciation of 25.48% over the past year reflects investor confidence. With a beta of 1.01, Oracle has shown market-aligned volatility, which could be comforting for risk-averse value investors. The analyst consensus of “Buy” and a price target of $126.65 provide a potential upside of 17.1%.

Risks and Considerations

 

Value investors should weigh Oracle’s negative working capital of $5.12 billion and net cash per share of -$29.14, which raise concerns about short-term liquidity and leverage levels. Moreover, the ownership structure, with 41.96% held by insiders and 43.87% by institutions, could affect the stock’s liquidity and price movements.

 

Conclusion

 

Oracle Corporation exhibits many qualities that a value investor seeks: robust profitability, strong cash flow generation, manageable debt, and a commitment to shareholder returns. While there are areas to monitor, such as its leverage and working capital, Oracle’s fundamentals present a compelling case for investment. The forward-looking indicators suggest an opportunity for growth, supporting the notion that Oracle is a value investment that could offer sustainable returns.

MICHAEL BURRY'S SCION ASSET MANAGEMENT 2023 Q3 PORTFOLIO

Scion Asset Management, a hedge fund managed by Michael Burry, disclosed 11 security holdings in their SEC 13F filing for the third quarter of 2023, with a total portfolio value of $43,902,000

 

Top 10 Holdings

As of September 30, 2023, Burry’s top 10 holdings were:

  1. STELLANTIS NV (STLA) – 17.43%
  2. NEXSTAR MEDIA GROUP INC-CL A (NXST) – 15.89%
  3. STAR BULK CARRIERS CORP (SBLK) – 10.98%
  4. BOOKING HOLDINGS INC (BKNG) – 10.54%
  5. ALIBABA GROUP HOLDING-SP ADR (BABA) – 9.88%
  6. EURONAV NV (EURN) 9.36%
  7. JD.COM INC (JD) – 8.29%
  8. HUDSON PACIFIC PROPERTIES INC (HPP) – 6.06%
  9. CRESCENT ENERGY Inc A (CRGY) – 5.76 %
  10. REALREAL INC (REAL) – 3.61%

Company Analysis

STELLANTIS NV (STLA)

  • Stellantis is a leading automotive manufacturer with a strong presence in Europe and North America. The company is benefiting from the shift to electric vehicles and is expected to see strong growth in the coming years. As the automotive industry shifts towards electric vehicles and more efficient models, Burry’s investment might indicate a belief in Stellantis’ potential to capitalize on these trends.

At close: Feb 12, 2024

NEXSTAR MEDIA GROUP INC-CL A (NXST)

  • Nexstar is a leading television broadcasting company with a strong portfolio of local stations. The company is benefiting from the growth of streaming services and is expected to see strong growth in advertising revenue in the coming years. With the ongoing demand for content and digital advertising, an investment here could reflect a forecast of steady revenue streams from broadcasting and digital ads.

STAR BULK CARRIERS CORP (SBLK)

  • Star Bulk Carriers is a leading dry bulk shipping company with a fleet of over 100 vessels. The company is benefiting from the strong demand for dry bulk commodities, such as iron ore and coal. The shipping industry can be volatile, but it’s also crucial for global trade. Investment in this sector may be driven by expectations of growth in international commerce or cyclic recovery in shipping rates.

BOOKING HOLDINGS INC (BKNG)

  • Booking Holdings is a leading online travel agency with a strong portfolio of brands, including Booking.com, Priceline, and Agoda. The company is benefiting from the recovery of the travel industry and is expected to see strong growth in the coming years. Burry might be banking on a surge in travel demand as the world emerges from COVID-19 restrictions.

ALIBABA GROUP HOLDING-SP ADR (BABA)

  • Alibaba is a leading e-commerce company with a strong presence in China. The company is benefiting from the growth of e-commerce in China and is expected to see strong growth in the coming years. Despite regulatory pressures, the company’s significant market share in China and expansion into other markets and sectors could be attractive for long-term growth.

EURONAV NV (EURN)

  • Euronav NV is a leading independent tanker company engaged in the transportation and storage of crude oil worldwide. Investments in this sector might be based on expectations of international oil trade dynamics and tanker rate fluctuations.

JD.COM INC (JD)

  • JD.com is another leading e-commerce company in China. The company is benefiting from the same trends as Alibaba. An investment in JD.com could be a play on the growth of e-commerce in China and globally.

CRESCNET ENERGY Inc-A (CRGY):

  • Crescent Energy is an independent energy company engaged in the acquisition and development of oil and gas properties. Investment in energy companies can be tied to forecasts of energy prices and the expectation of efficient resource management.

HUDSON PACIFIC PROPERTIES INC (HPP)

  • Hudson Pacific Properties is a real estate investment trust (REIT) that specializes in investing in retail and mixed-use properties. The company is benefiting from the recovery of the retail industry and is expected to see strong growth in the coming years. Burry’s investment here could be driven by the potential for long-term growth in commercial real estate, particularly in strategic locations.

REALREAL INC (REAL)

  • RealReal is an online marketplace for luxury goods. The company is benefiting from the growing popularity of online shopping for luxury goods. An investment in this company might reflect a belief in the growth of sustainable consumption trends and the circular economy, particularly in the luxury segment.

Overall, Burry’s current portfolio suggests that he is bullish on following sectors: Transportation,  E-commerce, Retail and Real Estate

MICHAEL BURRY'S SCION ASSET MANAGEMENT 2023 Q2 PORTFOLIO

Scion Asset Management, a hedge fund managed by Michael Burry, disclosed 31 security holdings in their SEC 13F filing for the second quarter of 2023, with a total portfolio value of $111 million

 

Top 10 Holdings

As of June 30, 2023, Burry’s top 10 holdings were:

  1. Expedia Group (EXPE) – 9.82%

  2. Charter Communications (CHTR) – 8.25%

  3. Generac Holdings (GNRC) – 7.37%

  4. Cigna Corporation (CI) – 6.93%

  5. CVS Health Corporation (CVS) – 6.21%

  6. MGM Resorts International (MGM) – 5.53%

  7. Stellantis (STLA) – 5.33%

  8. Vital Energy Inc. (VTLE) – 4.57%

  9. Signature Bank (SBNY) – 4.32%

  10. Liberty Broadband Corporation (LBRDA) – 4.11%

Michael Burry’s current portfolio is focused on a few key themes, including:

Value stocks: Burry is attracted to companies that are trading below their intrinsic value. He believes that these companies are undervalued because the market is underestimating their long-term prospects.

Defensive stocks: Burry also owns a number of defensive stocks, which are companies that are less sensitive to economic downturns. These stocks can provide investors with a cushion during market volatility.

Healthcare stocks: Burry is bullish on the healthcare industry, which he believes is poised to grow in the coming years. He owns a number of healthcare stocks, including insurers, drugmakers, and medical device companies.

Company Analysis

Expedia Group (EXPE)is a travel company that operates online travel agencies such as Expedia, Hotels.com, and Vrbo. Burry may have invested in Expedia because he believes that the travel industry will continue to recover from the COVID-19 pandemic. He may also be attracted to Expedia’s strong brand recognition and its large customer base.

Charter Communications (CHTR) is a cable and internet service provider. Burry may have invested in Charter because he believes that the company is well-positioned to benefit from the growth of streaming services and the increasing demand for high-speed internet. Charter also has a strong track record of profitability and free cash flow generation.

Generac Holdings (GNRC) is a manufacturer of generators and other power products. Burry may have invested in Generac because he believes that the company will benefit from the increasing demand for backup power generation. Generac’s products are also in high demand in areas that are prone to power outages.

Cigna Corporation (CI) is a health insurance company. Burry may have invested in Cigna because he believes that the company is well-positioned to benefit from the aging population and the increasing demand for healthcare services. Cigna also has a strong track record of profitability and dividend growth.

CVS Health Corporation (CVS) is a pharmacy chain and healthcare services provider. Burry may have invested in CVS because he believes that the company is well-positioned to benefit from the aging population and the increasing demand for healthcare services. CVS is also expanding its reach into the telehealth market, which is another area of growth for the company.

MGM Resorts International (MGM) is a casino and resort operator. Burry may have invested in MGM because he believes that the company will benefit from the recovery of the travel and leisure industry. MGM also has a strong track record of profitability and free cash flow generation.

Stellantis (STLA) is an automobile manufacturer. Burry may have invested in Stellantis because he believes that the company is well-positioned to benefit from the shift to electric vehicles. Stellantis also has a strong track record of profitability and free cash flow generation.

Vital Energy Inc. (VTLE) is a renewable energy company. Burry may have invested in VTLE because he believes that the company is well-positioned to benefit from the transition to clean energy. VTLE is also developing new technologies, such as battery storage, which could be in high demand in the future.

Signature Bank (SBNY) is a commercial bank. Burry may have invested in SBNY because he believes that the company is well-capitalized and has a strong track record of profitability. SBNY also has a niche focus on serving technology companies, which is a growing sector.

Liberty Broadband Corporation (LBRDA) is a broadband and wireless communications company. Burry may have invested in LBRDA because he believes that the company is well-positioned to benefit from the growth of the internet and the increasing demand for mobile broadband. LBRDA also has a strong track record of profitability and free cash flow generation.

Overall, Burry’s portfolio suggests that he is bullish on the consumer sector, the healthcare sector, and the technology sector. He is also investing in companies that are benefiting from long-term trends, such as the shift to online shopping, the aging population, and the transition to clean energy.

Source: Sec.gov

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