Michael Burry's Scion ramps up bets against Tesla in Q2

Saratoga, Calif.-based Scion Asset Management LLC increased its bearish put position in electric automaker Tesla Inc. and launched a new bet against Cathie Wood's ARK ETF Trust - ARK Innovation ETF in the second quarter.

The hedge fund, helmed by CEO Michael Burry, loaded up on options in the quarter with a mix of both bullish and bearish bets, according to its latest Form 13F filing.

Scion revealed a new $24.8 million common stock stake in media company Discovery Inc., which became its largest common stock holding as of June 30. It also launched new positions in oil and gas exploration and production company Ovintiv Inc. and in private prison owner-operator GEO Group Inc.

Scion raised its Tesla put position by 34.4% in the second quarter, pushing the implied value of the investment to $731.0 million, up from $534.4 million in the first quarter. The firm revealed a new put position on ARK Innovation ETF, which includes Tesla as one of its largest holdings. Tesla's shares have struggled this year after a blistering 2020, losing 3.7% year to date through June, compared to a 15.3% return for the S&P 500.

On the bullish side, Scion increased call positions in Facebook Inc., Alphabet Inc., Kraft Heinz Co. and CVS Health Corp. in the second quarter and revealed three brand new call positions as well.

The asset manager exited 18 positions in the second quarter, including a $9.2 million stake in Ingles Markets Inc., which was its second-largest common stock holding in the first quarter.