Scion’s Q2 13F portfolio: Burry invests 36% of long fund in GOOG calls. Also buys calls on FB, BKNG. Closed Tailored Brands & JACK stakes.

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If you figure out exactly what Michael Burry was up to in the second quarter of 2020, please let me know. Scion’s Q2 13F portfolio released today shows that Burry dumped his #1 holding — and new position — from last quarter, Jack in the Box (JACK). His fund Scion Asset Management also liquidated the losing Tailored Brands position, and slashed its Gamestop (GME) stake. The famous fund manager and focus of “The Big Short” also bought 80,000 call options on Google (GOOG), spending $113M. That’s now his top position, comprising 35.87% of Scion’s long portfolio.

Scion’s next three top holdings are also call options. Facebook (FB), Booking Holdings (BKNG) and Goldman Sachs (GS). In fact, Burry held 16 call positions representing 71.19% of the Q2 portfolio.

I should reiterate that 13F filings give only a partial glimpse into a hedge fund’s full portfolio. We have no idea what, if any, short positions were in Scion’s portfolio 45 days ago at the quarter’s end. However, Scion reported assets under management of $387M for Q2, while 13F securities (long equity positions) were $315M. The difference may be invested in hedges or other undisclosed offsetting positions. We also don’t know details of the call positions — duration, strike price, etc.

It certainly looks like the bullish bets on GOOG, FB, BKNG and GS have paid off. All have been stellar performers though Q2 and the first half of Q3.

Scion’s Q2 13F Portfolio

StockSymbolTypeShares HeldMarket Value% of PortfolioPrev % of PortRankingChng in sharesChange Type
Alphabet inc. class cGOOGCALL80,000113,089,00035.8678% 180,000new
Facebook incFBCALL93,20021,163,0006.7121% 293,200new
Booking holdings inc. (priceline)BKNGCALL11,60018,471,0005.8583% 311,600new
Goldman sachs group incGSCALL73,60014,545,0004.6132% 473,600new
Gamestop corp.  class aGME 2,750,00011,935,0003.7854%12.2272%5-250,000reduction
Western digital corpWDCCALL270,00011,921,0003.7809% 6270,000new
Bed bath & beyond inc.BBBY 1,000,00010,600,0003.3619% 71,000,000new
Discovery inc series aDISCA 500,00010,550,0003.3461%7.9232%8150,000addition
Trip.com grpTCOM 325,0008,424,0002.6718% 9325,000new
Qorvo incQRVO 75,0008,290,0002.6293%11.737%10-50,000reduction
Bank of america corp. (north carolina national bank)BACCALL342,3008,130,0002.5785% 11342,300new
Jpmorgan chase & co. (chemical bank)JPMCALL86,0008,089,0002.5655% 1286,000new
Copa holdings s.a.CPA 155,0007,837,0002.4856% 13155,000new
Helmerich & payne  inc.HP 375,0007,316,0002.3204% 14375,000new
Las vegas sands corpLVSCALL153,0006,968,0002.21%3.3875%1584,500addition
Uniti group incUNIT 636,8945,955,0001.8887% 16636,894new
Retail opportunity investments corpROIC 500,0005,665,0001.7967% 17500,000new
Maxar technologies ltdMAXR 300,0005,388,0001.7089%11.1931%18-600,000reduction
Foot locker inc. (f. w. woolworth)FLCALL180,0005,249,0001.6648%2.5677%1980,000addition
Wynn resorts ltdWYNNCALL70,0005,214,0001.6537%0.5392%2062,300addition
Qorvo incQRVOCALL38,0004,200,0001.3321%1.2204%2125,000addition
Designer brands incDBI 575,0003,893,0001.2347% 22575,000new
Precision drilling corp.PDS 4,024,0933,054,0000.9686% 234,024,093new
National oilwell varco  inc.NOVCALL172,4002,112,0000.6699% 24172,400new
Viacomcbs inc. class bVIACCALL86,0002,006,0000.6362% 2586,000new
Kimball international incKBAL 166,4521,924,0000.6102% 26166,452new
Cracker barrel old country store  inc.CBRLCALL14,9001,653,0000.5243%0.6498%278,200addition
Discovery inc series aDISCACALL62,2001,312,0000.4161% 2862,200new
Helmerich & payne  inc.HPCALL17,500341,0000.1082% 2917,500new
Boeing companyBA 00 10.4199% -60,000soldall
Michaels companies inc. (the)MIK 00 6.1311% -3,250,000soldall
Tailored brands inc.TLRDQ 00 8.1049% -4,000,000soldall
Jack in the box  incJACK 00 12.2447% -300,000soldall
Facebook incFB 00 11.6543% -60,000soldall

Burry closed out Tailored Brands and slashed his GME position during Q2.

Burry slashed Scion’s Gamestop (GME) stake during Q2. GME represented 3.79% of the long portfolio, down from 12.23% in Q1. Scion filed a 13D targeting Gamestop in August of 2019, when the stock was at $3.87. In a letter to management, Burry recommended a “game-changing” buyback of shares. GME was trading at $4.74 at the time of this writing.

Also last August, Burry filed a 13D on Tailored Brands. A letter accompanying the filing responded to a reported $10 buyout offer for TLRD. Burry wrote: “…we believe you must know that $10 per share is not fair value and will not be acceptable to shareholders.” Tailored Brands was recently trading in the pink sheets for $0.20.

Michael Burry has been a staunch value investor over the years, but Scion’s Q2 13F portfolio suggests he’s playing large cap momentum — at least for now.

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