Michael Burry Sells Entire Portfolio — Except Estée Lauder ($EL)
Michael Burry Sells Entire Portfolio — Except Estée Lauder ($EL)
Michael Burry, the legendary investor immortalized in The Big Short, has once again rattled financial markets with a bold move: Scion Asset Management, his investment firm, has sold nearly all of its stock holdings, retaining just one surprising position — Estée Lauder ($EL).
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While the market watches for signs of recession and sector rotation, Burry’s latest portfolio shift sends a clear message. But what does it mean, and why Estée Lauder?
From Bullish to Bearish: Burry Dumps China Tech
In late 2022 and throughout 2023, Burry built significant long positions in major Chinese tech companies like Alibaba, JD.com, Baidu, and PDD Holdings. These investments suggested a contrarian bet on undervalued Chinese equities amid global pessimism.
However, according to Scion’s latest 13F filings for Q1 2025, Burry has not only exited those positions — he's now betting against them.
Scion Asset Management purchased put options on Alibaba, JD.com, Baidu, and PDD, indicating a bearish outlook on these stocks. This change aligns with renewed geopolitical tensions, including former President Trump’s newly announced 60% tariffs on Chinese imports, which have spooked international markets.
"Burry doesn’t just exit quietly. When he flips, he flips hard — and the markets take notice."
Estée Lauder: The Lone Survivor
In a surprising twist, Estée Lauder ($EL) is now Burry’s only long equity position. Not only has he kept his stake — he's doubled it, now holding 200,000 shares.
This comes despite Estée Lauder being down roughly 15% year-to-date, as it struggles with declining revenues from Asian markets and post-COVID travel retail weakness. Yet Burry is clearly signaling confidence in the company’s long-term fundamentals and brand resilience.
Estée Lauder's diversified product line, global footprint, and historically stable margins make it a solid pick for uncertain economic times. Burry may be betting on a rebound in luxury spending and consumer staples as defensive plays.
What This Move Tells Us
Burry has never shied away from contrarian bets. From shorting subprime mortgages to calling Tesla “overvalued” in its early bull run, his plays are high-risk but often high-reward.
This time, he appears to be:
- Hedging against major geopolitical risk, especially in China.
- Avoiding overvalued U.S. tech amid AI exuberance.
- Betting on durable consumer demand in the luxury space.
Estée Lauder, while not a flashy pick, may be Burry’s shelter in the coming storm.
Final Thoughts
Michael Burry’s latest portfolio update is not just a reshuffle — it’s a signal. With most of his capital pulled from the market and redirected into put options, he’s preparing for turbulence. And yet, by anchoring himself to Estée Lauder, he hints at where he still sees long-term value.
As always, investors should do their own due diligence — but when Burry makes a move, it’s wise to pay attention.
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