Michael Burry, the famed investor who predicted the 2008 housing market crash, has made some major moves with his investments. Recent filings show a dramatic shift in his portfolio strategy.
Betting Against Tech and China
Burry’s Scion Asset Management has taken a significantly bearish stance on several major companies. They’ve purchased put options on Nvidia (NVDA), essentially betting against the tech giant’s stock price going up. They’ve also reversed their bullish position on Chinese stocks, buying put options on Alibaba (BABA) and Baidu (BIDU), indicating a belief these stocks will decline.
Estee Lauder: A Recession-Proof Bet?
Interestingly, Burry’s only remaining long position (a bet that the stock price will increase) is in Estee Lauder (EL). This suggests he sees the cosmetics industry as relatively resistant to an economic downturn, a common “recession-proof” investment strategy.
A Pattern of Portfolio Overhauls?
This isn’t the first time Burry has dramatically reshaped his portfolio. He significantly reduced his holdings in 2023, later acknowledging he’d made mistakes and then placing new, more targeted bets. This latest move suggests a continued cautious outlook on the overall market.
