Burry, Michael, recently revised his equity portfolio.
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Scion Asset Management's Q1 2025 Portfolio Shakeup: Michael Burry's New Game Plan
Michael Burry, the legendary investor and Scion Asset Management's big cheese, has pulled some serious moves for Q1 2025, switching gears from his long-standing bullish Alibaba (NYSE: BABA) bet to a strategic mix of put options and a focused long position. Here's the skinny on his revamped strategy:
Going Bear: A New Direction
Bye-bye BABA, it's been real! Burry has given up his beloved Alibaba stock to jump into a pool of savvy put options and a single long-term bet. Here's the lowdown on his new long play:
- Esteé Lauder Companies Inc. (NYSE: EL): With 200,000 shares worth an impressive $13.2 million (double the previous investment), Burry is riding the multinational cosmetics giant's downturn. Despite EL's 10.79% Q1 drop, the stock is still 6.19% down since Q2 started.
Short and Sweet: Burry's Q1 Put Options
While Burry's put options portfolio consists of six tasty morsels, let's have a quick sniff at what he's cooking with:
- *Baidu (NASDAQ: BIDU), Trip.com Group (NASDAQ: TCOM), JD.com (NASDAQ: JD), and PDD Holdings (NASDAQ: PDD): All of these put options Tar Baby's have been skillfully thrown into the pot to keep them from rising like a basket of hot biscuits.
- Alibaba: Who would've thought Alibaba would be part of Burry's put options party? But there it is, ready to be dumped if the Chinese tech giant starts to soar.
- Nvidia (NASDAQ: NVDA): And the pièce de résistance of Burry's Q1 portfolio is his substantial short position against Nvidia - can this semiconductor be shorted enough?
In Q1, Burry's new positions were worth anywhere from $9.2M to a whopping $97.5M. All told, the portfolio totaled $199M - a hefty 157.36% increase from the $77.4M December 31 value, despite slashing the number of investments by 46.15%.
Burry's Bullish Bet Against BABA
Why is Burry suddenly short on the once-beloved BABA? Well, the signs were already there. In Q3 2024, Burry owned 200,000 Alibaba shares and $17.9M in put options - a cocktail that worked well when BABA began 2025 at $84.95 and climbed to a peak of $147.50 on March 17. But, if you've been keeping tabs, you know that BABA is now 55.66% in the green at $132.23. Will it continue to prosper, or will Burry's bears be up to something?
Looking Ahead: Burry's Bet Against Semiconductors
Last but not least, let's talk about Burry's grand short position against Nvidia. Worth a whopping $97.5M, it's Burry's largest position in the portfolio – almost twice the value of his BABA bet. Is this continuation of Burry's 2023 bet against the semiconductor industry? You bet your boots! It seems Burry's still isn't convinced that the sector's fundamentals clash with its sky-high valuation – much like the skeptic he was during the Great Recession.
Lastly, remember that the latest 13-F filing covers the period ending March 31, but the market started melting in early to mid-April. It's safe to assume that Scion Asset Management's portfolio has shifted significantly in the blink of an eye, as the bears start feasting on their prey.
Disclaimer: The image used in this article is merely for illustrative purposes and may not accurately depict the individuals portrayed.
In the revamped Q1 2025 portfolio of Scion Asset Management, Michael Burry, known for his expertise in finance and investing, has divested from Alibaba (BABA) and moved towards a strategic mix that includes put options and a long-term focus on Esteé Lauder Companies Inc. (EL). Additionally, Burry has initiated a substantial short position against Nvidia (NVDA), signifying his skepticism towards the semiconductor industry's fundamentals, reminiscent of his stance during the Great Recession.
