'Big Short' investor Michael Burry reveals fresh bets on Meta, Alibaba, and UnitedHealth

Michael Burry's Scion Asset Management executed a significant bullish pivot in Q2 2023, liquidating bearish put options and establishing bullish call options with a notional value of $522 million across nine stocks, including Meta, Alibaba, and UnitedHealth. This substantial portfolio overhaul, which also includes $56 million in new direct equity stakes and a notable UnitedHealth bet aligning with Warren Buffett, represents a remarkable shift from Burry's prior bearish stance, signaling a potential warming to select equities. However, these 13F filings provide a lagged snapshot, and Burry's current positioning may have evolved.

Analysis

Michael Burry's Scion Asset Management executed a significant strategic reversal in the second quarter, pivoting from a pronounced bearish stance to a substantial bullish one. The fund liquidated its first-quarter put options, which had a notional value of $186 million on companies including Alibaba, JD.com, and Nvidia, and established new bullish call options with a notional value of $522 million across nine stocks, including Meta, ASML, and a notable directional flip to calls on Alibaba and JD.com. In addition to the options strategy, Scion built direct equity stakes valued at $56 million in firms such as Lululemon, Regeneron, and MercadoLibre. A particularly noteworthy move is the new investment in UnitedHealth, which aligns with a similar Q2 purchase by Warren Buffett's Berkshire Hathaway, suggesting a potential convergence of theses from two influential investors. It is critical to recognize that these 13F filings represent a snapshot with a six-week lag and do not disclose short positions, meaning Burry's current portfolio may have already changed given his history of frequent and dramatic overhauls.

Key Decisions for Investors

• Given Burry's aggressive shift from bearish puts to bullish calls on Chinese tech firms like Alibaba (BABA) and JD.com (JD), investors may want to re-evaluate the risk-reward profile, as this could signal a perceived tactical bottom or a favorable turn in sentiment.
• The concurrent new investment in UnitedHealth (UNH) by both Scion and Berkshire Hathaway warrants attention, suggesting a potential high-conviction thesis on the health insurer's fundamentals that could merit further due diligence by institutional investors.
• Considering Burry's history of rapid portfolio reversals and the inherent lag in 13F reporting, these disclosed positions should be treated as a tactical signal of perceived market opportunities rather than a long-term strategic endorsement.