Michael Burry Sells Entire Portfolio, Doubles Estee Lauder Stake

Michael Burry, famed for predicting the 2007-2008 financial crisis, has taken a markedly bearish stance in the first quarter of 2025 by selling nearly all long stock positions and acquiring significant put options against major tech companies such as Nvidia, Alibaba, Baidu, JD.com, and PDD Holdings. His hedge fund, Scion Asset Management, notably doubled its stake in Estée Lauder, making it the sole long position amid a portfolio otherwise dominated by bearish bets, reflecting a cautious outlook possibly driven by regulatory and macroeconomic concerns. Despite Burry's retreat from Chinese equities and the tech sector, Wall Street analysts remain optimistic about companies like JD.com, with many maintaining strong buy ratings and price targets suggesting substantial upside potential. The shift to put options and reduction in portfolio holdings indicate Burry's expectation of market downturns or corrections, contrasting with broader market rallies and positive earnings reports from some Chinese firms. Estée Lauder's stock drop and sensitivity to U.S.-China trade tensions may have presented Burry with what he views as a resilient, recession-proof opportunity. Overall, Burry's moves illustrate a defensive repositioning amidst uncertain market conditions, underscoring his reputation for contrarian and prescient investment strategies.