Company Overview - Michael Burry's Scion Asset Management has taken a new position in SLM Corporation (Sallie Mae), a significant player in the student loan sector, diverging from the tech and healthcare focus prevalent among many investors [1][2] - Sallie Mae specializes in private student loans and is currently navigating a complex regulatory environment and changing borrower demographics [2] Financial Performance - Sallie Mae reported strong third-quarter results, with diluted earnings of $0.63 per share and a 6.4% increase in loan originations, totaling $2.9 billion [4] - The credit quality of new loans has improved, with a cosigner rate of 95% compared to 92% the previous year, and average FICO scores at approval rising to 756 from 754, indicating disciplined underwriting practices [5] - Net charge-offs decreased to 1.95% of loans in repayment, down 13 basis points year-over-year, suggesting borrowers are managing their obligations effectively [6] Strategic Initiatives - Management executed a $1.9 billion loan sale during the quarter, generating $136 million in gains, while continuing a capital return strategy that included repurchasing 5.6 million shares at an average price of $29.45, resulting in a total share reduction of 55% since 2020 [6] - Sallie Mae is expected to benefit from upcoming federal student loan reforms, which could add $4.5 billion to $5 billion in annual originations, enhancing growth in the current $14 billion private student loan market [7]