Big Short’s Michael Burry Abruptly Sells Everything – Except for One ‘Recession-Proof’ Asset
Michael Burry, the hedge fund manager known for predicting the 2007 housing market collapse, has made significant changes to his portfolio. Recent SEC filings reveal that Burry's Scion Asset Management has taken a bearish position against Nvidia and major Chinese companies like Alibaba and Baidu, acquiring put options. The only remaining long position is in Estee Lauder, reflecting a cautious outlook on the market, particularly in the recession-resistant cosmetics sector. This marks the second major portfolio overhaul by Burry in recent years.
“Big Short” hedge fund manager Michael Burry, known for predicting the 2007 collapse of the housing market, just initiated a major portfolio shakeup.
New SEC filings from Burry’s Scion Asset Management show the firm has taken a substantial bearish stance against Nvidia (NVDA), opening a large position in put options against the chipmaker’s stock.
Scion has also reversed its previously bullish outlook on Chinese equities.
The fund acquired bearish put options on major Chinese companies, including Alibaba (BABA) and Baidu (BIDU).
And here’s the twist – Scion’s only remaining long position is in New York-based Estee Lauder (EL), a bet on the cosmetics giant’s potential recovery.
This solitary bullish stance underscores Burry’s cautious approach on the market, with the makeup industry often believed to be resilient to recession.
This is the second time in recent years that Burry has gutted Scion’s portfolio.
In 2023, Burry drastically reduced Scion’s holdings, only to later admit he was wrong while placing new, targeted bets.
