Stock Portfolio Alterations by Michael Burry Announced
A New Era for Michael Burry's Portfolio in Q1 2025
Michael Burry, the legendary investor, has drastically changed his game plan, as shown in his latest 13-F filing at the end of Q1 2025. Instead of the diverse portfolio he held at the end of 2024, he now focuses on a specific long position and a bundle of put options, marking a radical departure from his traditional investment style.
Michael Burry's Lone Q1 2025 Long Position
The notable exception to this change is Michael Burry's increased stake in Esteé Lauder Companies Inc. (NYSE: EL). He upped the ante from 100,000 shares worth $7.5 million on December 31 to a whopping 200,000 shares, valued at $13.2 million by March 31. Despite a 10.79% drop in EL equity during Q1, the multinational cosmetics corporation looks enticing to him, especially considering its brand strength.
Burry's Q1 Short Positions
During the first quarter, Burry dived headfirst into the world of put options, taking bearish stances on six companies. These targets included Baidu (NASDAQ: BIDU), Trip.com Group (NASDAQ: TCOM), JD.com (NASDAQ: JD), PDD Holdings (NASDAQ: PDD), Alibaba, and Nvidia (NASDAQ: NVDA). Each put option represents a pre-determined risk, signifying Burry's anticipation of potential downturns in these companies. The combined value of these put options ranges from $9.2 million to $97.5 million, and the entire portfolio, featuring seven holdings, boasts a worth of $199 million.
Unveiling the Alibaba Mystery
Alibaba stock, once a cornerstone of Burry's portfolio, is no longer his ride-or-die. In Q3 2024, he owned 200,000 Alibaba shares worth $21 million but moved to a short position in Q1 2025. The impressive rise of BABA stock, from $84.95 at the beginning of 2025 to over $147.50 in mid-March, and its subsequent drop to $132.23 at the end of Q1, may have influenced Burry's shift. However, the recent increase in BABA stock since the start of Q2 has cast some doubt on Burry's predictions.
The Nvidia Bet and 2023 Semiconductor Skepticism
Nvidia stands out as the largest position in Burry's portfolio, with a reported value of $97.5 million as of March 31. Compared to the $26.4 million value of the BABA bet, Nvidia's weightage is significant. This suggests that Burry is not only bearish on Nvidia but also has a long-standing skepticism toward the semiconductor industry. His notable bet against the semiconductor sector in 2023 and the current Nvidia position testify to his conviction that the industry's fundamentals may not support its lofty valuation.
Burry's Predictive Accuracy and Market Turmoil
The latest 13-F filing covers the period up to March 31, while the market bottomed out in early and mid-April. Consequently, it is speculated that Burry have made significant adjustments to his portfolio during the first few weeks of Q2, as it is not uncommon for him to capitalize on predicted market downturns as shown in his role during the Great Recession.
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[1] Wall Street Journal[2] Bloomberg[3] Yahoo Finance[4] The New York Times[5] CNN Business
In the evolving landscape of finance and investing, Michael Burry's focus on a long position in technology company Nvidia (NASDAQ: NVDA), valued at $97.5 million, reflects his lingering skepticism towards the semiconductor industry. Conversely, his short positions on six companies, including Alibaba (NYSE: BABA) and crypto-adjacent firms like Baidu (NASDAQ: BIDU) and PDD Holdings (NASDAQ: PDD), showcase his anticipation of potential downturns in these sectors.
