Michael Burry Bets Against Tech and China, Leaves Just One Stock Standing

Michael Burry, the contrarian investor made famous by The Big Short, is once again shaking up markets with a bold repositioning of his hedge fund’s portfolio — this time, leaning heavily into pessimism.

Recent filings from Scion Asset Management reveal a sharp pivot in strategy. The fund has taken out large put option positions against Nvidia, signaling that Burry sees downside potential in one of the market’s most celebrated tech stocks. The move comes amid surging AI-driven enthusiasm that’s pushed Nvidia to historic highs — but Burry appears unconvinced the rally will last.

China is also off the table. After previously backing Chinese tech, Scion has flipped its stance, now betting against heavyweights like Alibaba and Baidu through new bearish positions.

In a surprising contrast, Burry has left just one bullish position intact — a stake in beauty brand Estee Lauder. While the cosmetics sector might seem an unlikely safe haven, its historical resilience during downturns could be part of the calculus.

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This isn’t the first time Burry has hit the reset button on Scion’s holdings. He made similar sweeping changes in 2023, later admitting some misjudgments before redeploying capital in more focused bets.

Now, with the market dominated by optimism around tech and China showing signs of volatility, Burry’s sparse and defensive portfolio suggests he’s once again preparing for rougher waters.

Alexander Stefanov