Michael Burry’s Portfolio: What the ‘Big Short’ Investor Owns Now

Michael Burry has been busy adding to positions in his portfolio. Across his two most recent Substack posts, the investor returned to Lululemon Athletica Inc. (NASDAQ:LULU) and leaned harder into beaten-down consumer, China and value stocks.

Here is where his portfolio stands.

• LULU stock is back in Burry’s portfolio. Get all the stock details here.

The Biggest Bets

Burry’s two largest holdings each make up more than 10% of his portfolio.

• MercadoLibre Inc. (NASDAQ:MELI): He bought more shares below $1,500. A falling Brazilian real is hurting earnings, and investors are nervous about the company’s lending book. Burry believes the stock "has been punished too harshly." He said MercadoLibre is building its finance arm "with its eyes wide open" while reserving appropriately for bad loans.
• Temple & Webster Group Ltd. (ASX:TPW) (OTC:TPLWF): Burry said the Australian online furniture retailer made a high-volume bottom and has turned higher.

Fresh Buys

Many of his latest purchases share a theme. Each company is buying back stock at prices Burry considers too low.

• Lululemon Athletica: He bought back in after shares fell almost 4% to the $106s. New management has done little to fix what he called the "black hole" of the brand’s marketing. Even so, he sees the stock as "a good bet with little downside."
• Adobe Inc. (NASDAQ:ADBE): Burry added shares after Adobe disabled his Acrobat 2020 software and pushed him onto a subscription. He expects the company’s crackdown on perpetual licenses to pay off much like Netflix’s password crackdown, and he argued Adobe’s moat is stronger than most think. "And I love the valuation here," he wrote.
• Sprouts Farmers Market Inc. (NASDAQ:SFM): He bought shares in the $48s, on top of his call options. Sprouts has cut its share count from 133 million to 92 million over the last decade. Burry sees the weaker consumer as a temporary problem creating a buying opportunity.
• PayPal Holdings Inc. (NASDAQ:PYPL): Burry added shares in the $59s, making it a smaller but full position. The company is aggressively repurchasing stock below the price at which it rejected a takeover bid. He called the stock "a pretty concrete value case."

China

Burry called JD.com Inc. (NASDAQ:JD) "the most undervalued stock in my universe" and bought more.

• JD has cut its share count by over 220 million since 2023, though Burry wants more buybacks. Its cash conversion cycle has improved to negative 3.5 weeks.
• His Hong Kong basket is unchanged. It holds Tencent Holdings Ltd. (HKEX:0700), Meituan (HKEX:3690), Haier Smart Home Co. Ltd. (HKEX:6690), Haidilao International Holding Ltd. (HKEX:6862) and BYD Co. Ltd. (HKEX:1211), each a little over 2% of the portfolio. He described Hong Kong tech as the "anti-AI trade."

A Rare Miner

Burry added to Ero Copper Corp. (NYSE:ERO) on a pullback after S&P Global Ratings upgraded its debt to BB- with a stable outlook.

• He is bullish on copper, arguing AI development will expose aging infrastructure and drive years of upgrades.
• "It is not too common I find a miner I like," he wrote.

The Rest of the Book

• Watchlist: LVMH Moët Hennessy Louis Vuitton SE (OTC:LVMHF) remains on his radar, but he has no room for it yet.

• Other longs:
  • Birkenstock Holding plc (NYSE:BIRK) 
  • Deckers Outdoor Corp. (NYSE:DECK) 
  • Molina Healthcare Inc. (NYSE:MOH) 
  • HCA Healthcare Inc. (NYSE:HCA) 
  • Fiserv Inc. (NASDAQ:FISV) 
  • Build-A-Bear Workshop Inc. (NYSE:BBW) 
  • Veeva Systems Inc. (NYSE:VEEV)

• Housing finance: Junior preferred shares of Fannie Mae (OTC:FNMA) and Freddie Mac (OTC:FMCC). He may switch back to the common shares after the midterms.
• Puts:
  • VanEck Semiconductor ETF (NASDAQ:SMH)
  • Caterpillar Inc. (NYSE:CAT) 
  • Oracle Corp. (NYSE:ORCL) 
  • MetLife Inc. (NYSE:MET)
  • Palantir Technologies Inc. (NASDAQ:PLTR)

Photo: Shutterstock