‘The Big Short’ famed investor Michael Burry, who accurately predicted the 2008 housing market crash, has turned bearish on most equities while doubling his stake in cosmetics giant Estée Lauder Companies Inc. (NYSE:EL) during the first quarter, according to 13F regulatory filings with the Securities and Exchange Commission on Thursday.
What Happened: Burry’s Scion Asset Management increased its position in Estée Lauder to 200,000 shares from 100,000 shares at the end of the fourth quarter, despite EL stock being down 13.94% this year. The move comes as the beauty company pursues its “Beauty Reimagined” recovery strategy amid global headwinds.
EL stock closed at $63.67 on Thursday, down 0.69% for the day. In after-hours trading, the stock rose 3.85% to $66.12, according to data from Benzinga Pro.
The 13F report revealed significant portfolio adjustments, including Scion taking a substantial bearish position on artificial intelligence leader NVIDIA Corp. (NASDAQ:NVDA) through 900,000 put options. NVIDIA shares have retreated from their January all-time high of $153.13 amid macroeconomic concerns and worries about tariff impacts.
Why It Matters: Burry also completely liquidated his positions in Chinese tech companies, including Alibaba Group Holding Ltd. (NYSE:BABA), Baidu Inc. (NASDAQ:BIDU), JD.com Inc. (NASDAQ:JD), and PDD Holdings Inc. (NASDAQ:PDD).
This exit coincides with President Donald Trump‘s April announcement of hefty import tariffs targeting China, though both nations recently agreed to suspend reciprocal levies for 90 days.
The hedge fund manager also exited healthcare positions in HCA Healthcare Inc. (NYSE:HCA), Oscar Health Inc. (NYSE:OSCR), and Molina Healthcare Inc. (NYSE:MOH).
Analysts note that while Estée Lauder delivered stronger-than-expected third quarter earnings with improved margins and cost control, the company still faces challenges, particularly in Asia travel retail and a softening North American market.
Photo Courtesy: Sorbis On Shutterstock.com
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
