Investor Michael Burry Doubles Stake in Estee Lauder Amid Market Challenges

Michael Burry's Scion Asset Management has doubled its stake in Estee Lauder to 200,000 shares valued at $13.2 million, signaling confidence in the beauty company's turnaround under new CEO Stephane de La Faverie. The CEO has been launching new products and luxury tiers to revive demand amid slow growth in key markets such as North America and China. Estee Lauder faces ongoing challenges, including a 15% stock decline this year and exposure to the Asia-Pacific region, which accounts for about 31% of its sales. The recent 90-day truce in the US-China trade war, which reduced tariffs from 145% to 30%, is expected to ease some pressure on the company. Meanwhile, Burry has reduced his portfolio to seven companies, liquidated his positions in Chinese tech firms, and taken bearish stances on other sectors, reflecting broader caution despite his confidence in Estee Lauder's recovery strategy. Analysts view his investment as a positive endorsement of the company's efforts, although the position size remains relatively modest.