Michael Burry's Q2 Portfolio: Analyzing His Big Bets After Full Reset

Michael Burry's Portfolio Reset

• 💡 Q1 2025 saw a complete portfolio liquidation, with Burry selling out of 12 companies across various sectors, including Chinese tech, healthcare, and consumer brands.
• 🎯 This full reset freed up cash, allowing him flexibility to wait for optimal opportunities rather than holding onto momentum plays or richly valued assets.

Strategic Shift in Q2

• 🔑 Burry's Q2 moves reveal a highly concentrated and aggressive buying strategy, focusing on only five core holdings that now comprise almost his entire portfolio.
• 📈 He is targeting strong businesses currently overlooked by the market, emphasizing protection, predictability, and attractive prices.

Key Investments: Retail & Biotech

• 🛍️ Lululemon became his largest buy, representing over 21% of his portfolio, after its stock price fell more than 50% from 2023 highs, making it a premium brand on discount.
• 🔬 He also returned to Bruker Corporation, a scientific instruments company, betting on its underlying solid business and a potential recovery in the life sciences sector.

Healthcare & E-commerce Plays

• 💊 Regeneron Pharmaceuticals was a significant pick, valued for its strong revenue, free cash flow, and a price-to-earnings ratio well below its historical average.
• 🌐 Mercado Libre, Latin America's Amazon, represents a "pay up for dominance" play, with Burry investing in its high growth and booming fintech division despite a high P/E ratio.
• 🏥 UnitedHealth Group was chosen as a stable, cash-rich healthcare leader, acquired when market concerns led to a temporary undervaluation.

Burry's Investment Philosophy

• ✅ The common thread among these diverse companies is their status as leaders in their respective spaces, possessing durability, pricing power, and strong cash generation.
• 🧠 Burry's approach highlights a mindset of buying real businesses at temporarily discounted prices, rather than chasing trends or popular stocks.
• 💡 Investors can learn to look deeper than headlines, focusing on fundamental business strength and not being afraid to go against the grain when the math makes sense.