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Scion Asset Management Review

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Scion Asset Management

Scion Asset Management

Scion Asset Management, LLC is a fee-only firm headquartered in Saratoga, California. The financial advisor has more than $263 million in assets under management (AUM) on a discretionary basis, with only six clients total. This firm does not manage money for individual clients. To find an advisor that does, consider using SmartAsset’s free financial advisor matching service.

Scion Asset Management Background

Founded by CEO Dr. Michael J. Burry, Scion Asset Management began operations in 2013. The firm’s management also includes Chief Operating Officer and Chief Compliance Officer Zaeed Kalsheker, Chief Financial Officer George Serra and Chief Administrative Officer Jonathan Hallam. It’s important to note, however, that the private investment funds count as members of Scion Asset Mangement’s client base. We look further into the company’s client base below.

Scion Asset Management Client Types and Minimum Account Sizes

Scion Asset Management only provides discretionary investment advice to six clients in total. The company’s Form ADV lists one as an insurance company, or separately managed account, while the other five clients are private investment funds. The private funds include Scion Master G7, L.P. ; Scion G7, L.P. ; Scion G7 Offshore, Ltd. ; Scion Value G7, L.P. and Scion Asia, L.P. 

Additionally, all private investment funds are Cayman Islands or Delaware-based. The firm says that investors in the private investment fund may also include high-net-worth individuals, foundations, trusts, charitable organizations, family offices, a fund of hedge funds, corporations and businesses, pension plans and endowments.

The firm does not require a minimum investment amount for a separately managed account, but it does for its private investment funds. For the Scion G7 and Scion G7 Offshore funds, the firm generally requires a $1 million minimum investment. Scion Asset Management also mandates a $1 million minimum for the Scion Asia fund. For the Scion Value G7 fund, however, the firm requires a minimum account size of $500,000. Scion also retains the discretion to make an exception to the minimum investment requirement. The firm requires each investor in a private fund to be qualified as an accredited investor

Services Offered by Scion Asset Management

Scion Asset Management implements an investing approach that aims to simultaneously diversify their clients’ portfolios and increase clients’ success rate. When it comes to investment products, clients generally have a wide selection of instruments to choose from. The firm’s products and services include:

  • Institutional Advisory Services
    • Discretionary investment management
    • Fundamental Investment Analysis
    • Market Judgement
    • Risk Management
    • Technical Investment Analysis
    • Asset Allocation and valuation
  • Investment Products
    • Equities 
    • Exchange-traded funds (ETFs)
    • Government securities 
    • Corporate debt securities 
    • Convertible securities 
    • Options and warrants
    • Equity swaps and credit default swaps
    • Derivative instruments

Investment Philosophy

Scion says it values fundamental research when working to meet clients’ investment objectives. The firm also describes its approach as one that seeks out undervalued securities when conducting investment research. Through this method, the firm analyzes the stock market from a range of approaches, which may include technical and macroeconomic factors. Scion Asset Management also says it works to provide clients with a diverse mix of portfolio opportunities it believes will increase their chances of investment success. 

The firm may also use leverage and derivative strategies to increase the rate of client success. The advisory also believes in using fundamental analysis methods to assess market conditions from a holistic standpoint. When it comes to risk, Scion Asset Management says it works to identify, measure and observe any risks that may affect a client’s investments.  

Fees Under Scion Asset Management

Though Scion Asset Management doesn’t list a fee schedule on its website or firm brochure, the company charges clients both a management fee and incentive allocation/performance-based fee for investment services. The management fee requires clients to pay up to 2% annually. For separately managed accounts, the firm requires management fees to be calculated and paid in arrears on a quarterly basis. But for private investment funds, the firm says it deducts asset-based fees from the investor’s capital account in advance and on a monthly basis. Scion Asset Management may also adjust the fee for clients or investors through separate agreement, without notifying the other clients or investors in a fund. In addition, the firm may also reduce or waive management fees at its discretion. 

For incentive allocation fees, Scion Asset Management will earn up to a 20% share in the appreciation amount of each client’s account. The firm says it bases its incentive allocation fees on each year’s performance. It charges the fees at each December 31.

What to Watch Out For

As noted above, this firm does not manage money for individuals. If you are seeking that type of firm, consider using SmartAsset’s free financial advisor matching service.

Potential clients should note that Scion Asset Management retains the authority to shift their clients’ investment activities without providing notice. The firm explains that it may expand or reduce clients’ investment strategies to strategically meet market conditions. Therefore, it may buy or sell securities without obtaining specific client consent. 

Employees within the firm may also use personal trading accounts to purchase the same securities it may recommend for its clients. However, firm professionals may nullify such transactions if they pose a conflict of interest for clients.

Scion Asset Management does not have any disclosures of legal or regulatory action, according to its most recently filed Form ADV.

Opening an Account With Scion Asset Management

You’ll generally have two options if you’re interested in opening an account with Scion Asset Management. If you live near Cupertino, you can stop by the firm’s office to speak with a representative. You can also set up an appointment with a financial advisor by calling the firm at (408) 441-8400. 

Tips for Saving for Retirement

  • It's been said that a goal without a plan is only a dream. For help making a concrete plan to achieve your retirement goal, consider hiring a financial advisor. To find the right advisor for you, use SmartAsset's matching tool. It will connect you with up to three advisors in your area.
  • Investing is one of the biggest ways to save for retirement. If you’d like to create a successful investment portfolio and strategically allocate your assets, consider using our investment calculator.

All information was accurate as of the writing of this article. 

How Many Years $1 Million Lasts in Retirement

SmartAsset's interactive map highlights places where $1 million will last the longest in retirement. Zoom between states and the national map to see the top spots in each region. Also, scroll over any city to learn about the cost of living in retirement for that location.

Least
Most
Rank City Housing Expenses Food Expenses Healthcare Expenses Utilities Expenses Transportation Expenses

Methodology To determine how long a $1 million nest egg would cover retirement costs in cities across America, we analyzed data on average expenditures for seniors, cost of living and investment returns.

First, we looked at data from the Bureau of Labor Statistics (BLS) on the average annual expenditures of seniors. We then applied cost of living data from the Council for Community and Economic Research to adjust those national average spending levels based on the costs of each expense category (housing, food, healthcare, utilities, transportation and other) in each city. Using this data, SmartAsset calculated the average cost of living for retirees in the largest U.S. cities.

We assumed the $1 million would grow at a real return (interest minus inflation) of 2%. This reflects the typical return on a conservative investment portfolio. Then, we divided $1 million by the sum of each of those annual numbers to determine how long $1 million would cover retirement expenses in each of the cities in our study. Cities where $1 million lasted the longest ranked the highest in the study.

Sources: Bureau of Labor Statistics (BLS), Council for Community and Economic Research