Scion Asset Management is a small firm focused on serving institutional investors, and pooled investment vehicles in particular. The firm doesn’t work with individual investors, although individuals may invest in the funds for which it provides investment advisory services. Based in Saratoga, Calif., Scion has just six employees, two of whom serve in investment advisory roles. The team currently oversees over $638.9 million in assets under management (AUM).
The bottom line: Scion Asset Management mainly works with pooled investment vehicles, though individual investors can access the firm by investing in the funds it serves.
|Assets under management: $638,901,404|
|Minimum investment: Varies by fund|
|Fee structure: A percentage of AUM, performance-based fees|
|Headquarters: 20665 4th Street, Suite 201
Saratoga, CA 95070
All information included in this profile is accurate as of December 6, 2021. For more information, please consult Scion Asset Management’s website.
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Scion Asset Management was founded in 2013 by Michael J. Burry. The company is owned and controlled by Burry, who is a physician turned investor.
Today, Burry leads Scion Asset Management’s investment approach, with the help of a small team of investment professionals who assist in implementing the firm’s strategies.
Burry, the firm’s founder and owner, was the manager of Scion Capital prior to the stock market crash of 2008, and was brought into mainstream recognition due to his mention in Michael Lewis’ book “The Big Short.” Written about the crash of the subprime real estate market, the book was eventually made into an Oscar-winning Hollywood movie. Burry was one of the few to foresee the risks of the subprime market.
Scion Asset Management exclusively serves institutional investors. All of its clients are currently pooled investment vehicles, of which it serves the following five funds:
In order to invest with Scion Asset Management as an individual, one needs to have enough to buy into a fund. The fund with the lowest minimum is the Value Fund, which generally requires an investment of at least $500,000. In addition, anyone buying into the fund is required to be an accredited investor, which means they must meet requirements that include having either an income of $200,000 annually ($300,000 if married) or a net worth over $1 million.
Investors in the firm’s funds include not only high net worth individuals, but also family offices, fund of hedge funds, endowments, foundations, trusts, charitable organizations, pension plans and other corporate or business entities.
In short, Scion Asset Management manages private funds — specifically, it provides investment advice to five private investment funds. Its aim in managing the funds is to provide its clients with long-term capital appreciation.
In general, Scion Asset Management relies on fundamental research to guide its investment decisions. To do so, the firm examines investment opportunities around the world in an attempt to identify assets that are undervalued.
Scion Asset Management primarily invests in equities, though it will use other investment types, including debt, exchange-traded funds (ETFs), government securities, options, warrants, equity swaps, credit default swaps and other types of derivatives. That being said, each of the funds it oversees has its own focus area. For example, Scion’s Asia Fund focuses on assets traded in Japan, South Korea and Hong Kong.
Portfolios are constructed according to Scion’s assessment of which opportunities are appropriate and which assets will add the diversity needed to help the funds achieve the desired capital appreciation. Scion also uses a number of different strategies to leverage its positions, including using shorts and investing in derivatives.
The institutional investors that Scion Asset Management works with pay for the firm’s services based on a percentage of AUM, as well as a performance-based fee. The asset-based management fee can be as high as 2% a year. Scion Asset Management can also take up to 20% of the value of the appreciation from each client’s account.
In addition to the aforementioned fees, the firm’s clients are also responsible for all operating costs involved in running the fund, plus their portion of the expenses shared among Scion Asset Management’s clients.
Scion Asset Management does not have any disciplinary disclosures to report. For reference, the U.S. Securities and Exchange Commission (SEC) requires all registered investment advisors to disclose any past disciplinary events involving the firm, its employees or its affiliates in their Form ADV filings. This includes any civil, regulatory or criminal actions within the last 10 years.
For further information on Scion Asset Management, visit the firm’s Investment Adviser Public Disclosure (IAPD) page.
Individual investors interested in working with Scion Asset Management by investing in one of the firm’s funds can reach out over email at [email protected]. The firm’s phone number is (408) 441-8400.
Fund investors will receive regular reports, including:
Scion Asset Management has just one office location. It is in Saratoga, Calif.
For the most part, Scion Asset Management is going to work best for institutional investors looking to take advantage of capital appreciation for their endowments or other investments. The lowest minimum to buy into one of the funds that Scion manages as an individual is $500,000. Plus, all individuals must be accredited investors. As a result, many individual investors, particularly beginners, won’t be able to access Scion Asset Management.
For those looking for a more traditional financial advisor, there are a number of options out there to consider to ensure you find an advisor who best suits your needs.