Michael Burry – Portfolio Update – Q4 2024
Michael Burry, the legendary investor known for predicting the 2008 financial crisis, has revealed his latest portfolio holdings for Q4 of 2024. The Scion Capital manager resumes his high-turnover strategy after a slower Q3, during which he only opened three put positions to hedge his Chinese holdings. Over the past few quarters, Burry has focused more on fine-tuning existing positions rather than initiating major new investments. However, this quarter sees the highest number of new positions opened for 2024. In this article, we will review his latest disclosures to gain insight into his market vision.
Michael Burry’s Portfolio Holdings and New Positions by Quarter
Source: SEC Filings
Burry’s Strong Focus on Chinese Tech Stocks
Michael Burry has been refining his Chinese tech stock positions since late 2023. His investments in Alibaba ($BABA) and JD.com ($JD) began in Q3 2023, with Burry adding to his positions over the following quarters. In Q3, he initiated put options as a hedge, fully hedging his JD position while partially hedging BABA and Baidu ($BIDU). By Q4, he closed out all these put positions, making Chinese stocks a dominant part of his portfolio again.
Notably, Burry’s top holdings are now $BABA, $BIDU, and $JD, with Pinduoduo ($PDD) ranking as his 6th largest position. He adjusted his positions by reducing his stakes in Alibaba (down 25%) and JD (down 40%) while initiating a new position in Pinduoduo, a major Chinese e-commerce platform known for its marketplace, Temu. These Chinese stocks now make up over 50% of Burry’s portfolio.
Chinese stocks have shown signs of recovery after a brief correction following September’s rally, signaling that Burry remains optimistic about the sector’s future.
Estée Lauder ($EL) – A Potential Turnaround Play?
One of the most notable additions to Burry’s Q4 portfolio is Estée Lauder ($EL), the global beauty giant known for its premium skincare, makeup, and fragrance products. Burry acquired 100,000 shares, making Estée Lauder nearly 10% of his portfolio.
Founded in 1946, Estée Lauder’s portfolio includes brands like Estée Lauder, Clinique, La Mer, and MAC Cosmetics. Operating in over 150 countries, the company has long been a significant player in the beauty industry. However, its stock has faced a steep decline over the past three years, dropping 80% from an all-time high of $355 to $68.69 as of Friday’s close. The company’s sales and profits have steadily declined since 2022, with net income falling from $2.41 billion in 2022 to just $400 million last year.
This downturn has largely been driven by weaker sales in the Asian market, particularly in China, where Estée Lauder faces growing competition from local brands. This shift in consumer preferences has been exacerbated by the rise of Chinese luxury brands, especially in the wake of the COVID-19 pandemic.
Burry’s investment suggests he may see potential for a turnaround, betting on the stock’s long-term value despite the recent struggles.
Other Purchases
Other than $PPD and $EL Burry also started a relatively small positions in to the following companies.
- HCA Healthcare Inc ($HCA): A healthcare services provider, operating hospitals and healthcare facilities across the U.S.
- Bruker Corp ($BRKR): A company that designs and manufactures scientific instruments, focusing on life science, materials science, and chemical analysis.
- VF Corp ($VFC): An apparel and footwear company, with brands including The North Face, Vans, and Timberland.
- Magnera Corp ($MAGN): A company focused on healthcare and life sciences solutions, particularly in drug development and research.
- Oscar Health Inc ($OSCR): A health insurance company that uses technology to simplify healthcare experiences for individuals and businesses.
- Canada Goose Holdings Inc ($GOOS): A company known for its high-end outerwear, particularly winter coats and jackets, recognized for their quality and warmth.
Portfolio Exits
According to the latest filing, Burry closed six positions in total. Three were put positions in the previously mentioned Chinese companies. The remaining closures included Shift4 Payments, Inc ($FOUR), which was his largest position closed last quarter. Burry had initially purchased Shift4 stock in early 2024 and appears to have taken profits when the stock reached an all-time high in December. He also closed smaller positions (under 2% of his portfolio in Q3 2024) in RealReal Inc ($REAL) and Olaplex Holdings Inc ($OLPX).
Summary of Michael Burry’s Q4 2024 Portfolio Holdings
This article is for informational purposes only and is neither investment advice nor a solicitation to buy or sell securities. All investment involves inherent risks, including the total loss of principal, and past performance is not a guarantee of future results. Always conduct thorough research or consult with a financial expert before making any investment decisions. BBAE has no position in any investment mentioned.
