Chronological feed of everything captured from Scion Asset Management.
The Joyful Heart Foundation, founded by Mariska Hargitay, focuses on critical, often overlooked areas within the realm of abuse and trauma. Their initiatives include supporting frontline responders for secondary trauma, advocating for comprehensive rape kit testing, and addressing the burgeoning issue of image-based abuse through legislative action. The organization is highly rated by Charity Navigator and Candid.
Michael Burry proposes a novel methodology to adjust GAAP earnings, specifically addressing stock-based compensation, to more accurately determine "owners' earnings" for companies within the NASDAQ 100 index. This approach aims to provide a more robust measure of intrinsic value, departing from traditional GAAP principles that he argues are susceptible to manipulation and do not always reflect true economic ownership.
Michael Burry is actively purchasing shares of Fannie Mae and Freddie Mac. This action is driven by his assessment of their current undervaluation, despite broader market declines. Burry suggests that these opportunities often emerge during periods of extreme market pessimism, where holding positions feels "inhuman" to most investors.
The Scion Asset Management blog, "Cassandra Unchained," is implementing a new content format. Each in-depth post, ranging from 5,000 to 10,000 words with numerous visuals, will now be accompanied by an abridged summary of under 1,500 words and minimal visuals. This change aims to cater to a broader audience while maintaining the rigor of the primary content.
The Headstrong Project is a non-profit organization addressing the urgent need for accessible mental healthcare for veterans, service members, and their families. It provides confidential, evidence-based PTSD and mental health treatment, effectively bypassing bureaucratic hurdles and wait times common in traditional healthcare systems. Despite operating with a significant deficit in 2024 to meet demand, the organization demonstrates remarkable efficiency and efficacy, as evidenced by high patient engagement and positive outcomes, and an exemplary financial accountability rating.
Michael Burry argues that the U.S. market is exhibiting extreme valuations and increasing fragility due to structural forces such as passive investing, stock buybacks, demographics, and government interventions. He suggests these factors have inflated valuations to unprecedented levels, creating a "coiled spring" effect that is unmoored from historical valuation measures and ripe for a potential downturn, despite popular enthusiasm for AI-driven growth.
Michael Burry argues that current Large Language Models (LLMs) are fundamentally flawed by prioritizing language over genuine reasoning. He posits that true intelligence, as exemplified by a historical case study, can exist prior to and independent of language. This suggests that LLMs, by focusing solely on linguistic sophistication, are merely creating reflections rather than actual intelligence.
Nvidia has significantly increased its purchase obligations to $95.2 billion, driven by TSMC's requirements for longer-term contracts and upfront cash to support custom fabrication. This shift represents a departure from historical business norms and introduces heightened financial risk as these obligations are projected to grow as a share of total supply.
Michael Burry, a prominent investor, recounts his substantial investments in Asian markets, particularly Hong Kong, beginning in 2003. He highlights the significant growth observed in the Hang Seng Index post-SARS-Cov-1 and his early optimism surrounding Chinese entrepreneurial spirit and companies like Tencent. The piece suggests a divergence between the investment landscape he experienced then and the current state of Hong Kong stocks, which are described as being "in the dumps."
Palantir’s financial statements indicate potential aggressive revenue recognition tactics, with accounts receivable (AR) consistently outpacing revenue growth in 9 out of the last 12 quarters. This divergence suggests the company may be booking sales faster than it collects cash, implying a deterioration in customer payment cycles and potentially inflating reported revenue figures. The significant increase in Days Sales Outstanding (DSO) from 20 to 67 days further supports this concern.