Michael Burry Trims China Tech Bets, Adds Fourth Titan
Amid market volatility, noted investor Michael Burry of "The Big Short" fame has adjusted his portfolio, reducing exposure to Chinese tech stocks.
In the quarter ending December 31, 2024, Burry's Scion Asset Management decreased its stake in Alibaba Group (BABA) by 25% and reduced its JD.com (JD) holdings by 40%. However, the fund manager initiated a position in Pinduoduo (PDD), the e-commerce company behind Temu.
China Bets Decline
Burry's China tech bets, which previously constituted 65% of his portfolio, now account for approximately 53%, with a combined value of $41 million.
The surge in Pinduoduo shares, along with gains in Alibaba, Baidu (BIDU), and JD.com, have buoyed Burry's investments since DeepSeek's release.
Portfolio Rebalancing
Beyond China tech, Burry exited Olaplex, Shift4Payments, and TheRealReal, while adding positions in Canada Goose, Estee Lauder, Vans-owner VF Corp., Bruker, HCA Healthcare, Magnera, and Oscar Health.
Despite the changes, Scion's number of positions rose from 11 to 13, while the portfolio's overall value declined to $77 million, excluding options.
Caution Remains
It's important to note that quarterly portfolio updates only capture a snapshot of holdings at a specific time. Burry may have made further adjustments in the new year.
Burry has a history of making bold predictions and investments, including his early bet on GameStop and his bearish outlook on microchip companies and major indexes.