‘Big Short' Michael Burry stock portfolio update

Michael Burry's Scion Asset Management significantly reshuffled its Q2 2025 holdings, initiating new positions in UnitedHealth Group (UNH), Lululemon (LULU), Bruker (BRKR), Regeneron (REGN), and MercadoLibre (MELI), while trimming his largest stake in Estee Lauder (EL) by 25%. The UNH addition is particularly notable, aligning Burry with other major institutional investors who also boosted their stakes, suggesting a potential value play given the stock's significant drop from its 52-week high. Despite several new positions currently trading below his purchase price, Burry's track record indicates a focus on weathering short-term volatility for long-term gains.

Analysis

Michael Burry's Scion Asset Management executed a significant portfolio rebalancing in Q2 2025, diversifying into new sectors by initiating positions in UnitedHealth (UNH), Lululemon (LULU), Bruker (BRKR), Regeneron (REGN), and MercadoLibre (MELI). A key move was the establishment of a substantial stake in UNH, a decision that aligns Scion with other major institutional investors like Warren Buffett and David Tepper who also increased their holdings during the quarter. This collective institutional interest, coupled with the stock trading substantially below its 52-week high of $621.24, suggests a strong conviction in a value thesis for the healthcare giant. Concurrently, Burry trimmed his largest holding, Estee Lauder (EL), by 25%, although it remains the portfolio's anchor at 21.55%. Notably, most of the new positions, including UNH, LULU, BRKR, and MELI, have incurred immediate paper losses ranging from 11.24% to 18.35% since their purchase. However, Regeneron has shown a positive return of 7.80%, standing out as the sole immediate gainer. This pattern of entering positions at what appears to be a cyclical low is consistent with Burry’s reputation for long-term, contrarian investing and a willingness to withstand short-term market volatility.

Key Decisions for Investors

• Given the strong institutional convergence on UnitedHealth and the stock's significant discount to its 52-week high, investors should view Burry's entry as a signal to assess the stock as a potential deep-value opportunity in the healthcare sector.
• The immediate and substantial underperformance of the new Lululemon, Bruker, and MercadoLibre positions highlights the high-risk, contrarian nature of these trades; investors considering similar positions must be prepared for significant short-term volatility and have a long-term conviction.
• The 25% reduction in the top holding, Estee Lauder, demonstrates a strategic reallocation of capital from a concentrated winner to fund new, diversified opportunities, offering a practical example for managing portfolio concentration risk.
• Regeneron's outperformance relative to the other new buys warrants monitoring, as it may indicate a stronger near-term fundamental or momentum case within Burry's basket of new healthcare and biotech investments.