Michael Burry's Dramatic Shift: From Shorting to Long on Chinese Stocks
Table of Contents
You might want to know
- What led Michael Burry to reverse his position on Chinese stocks?
- How does the investment strategy of "The Big Short" protagonist impact global markets?
Main Topic
Michael Burry, famous for his portrayal in "The Big Short," has made a significant pivot in his investment strategy regarding Chinese stocks. Once known for his bearish outlook, Burry has recently abandoned his bearish bets and taken an aggressive long position, primarily through call options, signaling an optimistic view on Chinese companies' prospects.
As of the second quarter of 2025, Michael Burry's investment firm, Scion Asset Management, held a portfolio in U.S. equities worth approximately $578 million. A substantial 92.37% of this portfolio was concentrated in its top ten holdings, showcasing a targeted investment approach. The pivot involved clearing out all put options and acquiring call options for major Chinese technology firms such as Alibaba and JD.com, demonstrating a profound change in strategy.
Burry’s past includes a successful prediction of the U.S. housing market collapse in the mid-2000s, where he utilized credit default swaps to forecast and profit from the housing bubble burst. This foresight earned him and his investors significant returns, later immortalized in Michael Lewis's book and the popular film adaptation.
During the first quarter of 2024, Burry's firm increased its stakes in JD.com and Alibaba by 80% and 66.67% respectively. This came at a time when many international investors held a bleak outlook on Chinese stocks. This contrarian approach aligned with his historical reputation for seeing opportunities where others see risk.
Despite some profit-taking and repositioning at the end of 2024, by the second quarter of 2025, Burry made another dramatic shift, clearing out his bearish stances and re-acquiring bullish positions on Chinese stocks. Such changes highlight how dynamic investment strategies must be, reflecting not just current market sentiment but anticipated future trends.
Key Insights Table
| Aspect | Description |
|---|---|
| Michael Burry's Pivot | From shorting to holding long positions on Chinese stocks. |
| Investment Strategy | Focused on high concentration in select equities, reflecting targeted bets. |
Afterwards...
Looking beyond current trends, Burry's evolving portfolio suggests a keen interest in what the future holds for international markets. Investors may want to keep an eye on emerging technologies and the geopolitical shifts that affect global markets. The fluctuating dynamics emphasize that an adaptive investment strategy is often crucial in ensuring sustained success. By understanding and anticipating changes, investors can better align themselves with future opportunities.