In this article, we discuss Michael Burry’s stock portfolio: top 8 stock picks.
Legendary investor Michael Burry is best known for his contrarian strategies that often outperform the overall market. Burry is famous for having foreseen the subprime mortgage crisis that occurred from 2007 to 2010. He shorted the mortgage bond market, making $800 million for himself and his investors.
While he made a name for himself at the height of the financial crisis in 2007, the legendary investor has built a reputation on Wall Street on his ability to identify and invest in market-beating opportunities. His recent actions demonstrate a trend toward high-conviction investments in cheap, market-leading businesses.
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“Dr. Burry’s one of those investors who doesn’t just follow the crowd,” says Edward Corona, a market trader and publisher of The Options Oracle Newsletter. “He’s a true contrarian, digging deep into the numbers and spotting opportunities others might miss.”
China is one market in which the legendary investor is taking a keen interest, going by holdings in Scion Asset Management, a hedge fund he established in 2013. While the investment fund focuses on long-term capital appreciation, it also targets undervalued or misunderstood investment opportunities. That’s evident given that Burry’s biggest holdings are Chinese internet giants that have been battered in recent years amid a slowdown in the Chinese economy due to heightened regulatory pressure.
The changes in Scion Asset management came as Beijing stepped up its attempts to boost economic growth while putting breaks to regulatory pressure. Although the unexpected stimulus plan caused a wild surge in Chinese stocks, some market watchers are still wary of the industry’s long-term prospects. The CSI 300 Index, the nation’s equity benchmark, rose 32% in just two weeks following Beijing’s stimulus measures.
Despite identifying as a value investor, Burry tends to jump in and out of positions frequently rather than hold his stocks for an extended period. That was evident as he exited his position in a real estate company in the third quarter on concerns that the sector would capitulate amid high interest rates. His most significant action during the third quarter was selling all of his shares in a real estate investment trust (REIT) in Los Angeles. He used the money he received to hedge against potential losses on some of the company’s biggest investments.
Michael Burry of Scion Asset Management
Our Methodology
To make the list of Michael Burry Stock Portfolio: Top 8 Stock Picks we scanned Scion Asset Management portfolio. We then settled on the legendary investor top holdings and analyzed why they stand out as long term plays. Finally, we ranked the stocks in ascending order based on Scion Asset Management’s stake value in the companies.
At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Michael Burry Stock Portfolio: Top 8 Stock Picks
8. American Coastal Insurance Corporation (NASDAQ:ACIC)
Scion Asset Management’s Stake Value: $1.13 Million
Number of Hedge Fund Holders: 15
American Coastal Insurance Corporation (NASDAQ:ACIC) specializes in commercial, personal property, and casualty insurance. ACIC has consistently shown profitability by focusing on risk management and underwriting discipline, while aiming to seize opportunities in favorable market conditions. In order to position for future growth, the company is undergoing a strategic transformation that involves reallocating resources from personal to commercial lines and strengthening its partnership with AmRisc.
American Coastal Insurance Corporation (NASDAQ:ACIC) reported significant improvements in its third-quarter financial performance, with revenues increasing 56% to $82.1 million. Net income nearly tripled to $28.1 million compared to $10.6 million the previous year same quarter. The underlying combined ratio increased from 59.2% to 52.9%, indicating outstanding underwriting performance.
Growing confidence in American Coastal Insurance Corporation’s (NASDAQ:ACIC) ability to manage risk while preserving profitability is demonstrated by the strategic reduction in quota share reinsurance. A disciplined approach to the market is demonstrated by the consistent gross written premiums of $93 million with improved margins.
7. The RealReal, Inc. (NASDAQ:REAL)
Scion Asset Management’s Stake Value: $1.57 Million
Number of Hedge Fund Holders: 20
The RealReal, Inc. (NASDAQ:REAL) is a specialty retailer that operates an online marketplace for the resale of luxury goods. It offers various product categories, including women’s, men’s, Jewellery, and watches. It primarily sells products through online marketplace and retail stores. It was one of the best-performing stocks in Michael Burry’s portfolio after rallying 400% in 2024.
The company’s blockbuster gains last year were due to a renewed profit focus under new leadership, boosting market sentiment. Higher profit margins due to a revamped consignment fee structure and less dependence on low-margin direct sales also bolstered sentiments on Wall Street.
Additionally, The RealReal, Inc.’s (NASDAQ:REAL) average order value increased 1.8% year over year to $522, affirming strong demand for its products. The net merchandise value (NMV) increased 10.7% year over year, surpassing the 6.2% growth in gross merchandise value (GMV), thanks to an exceptionally low return/cancellation rate of 22.6%, the lowest in four years. Customers respond favorably to the company’s value-focused approach, highlighting the items’ original primary list price. As 2024 ended, demand grew stronger due to lower interest rates and improved consumer purchasing power.
6. Olaplex Holdings, Inc. (NASDAQ:OLPX)
Scion Asset Management’s Stake Value: $2.35 Million
Number of Hedge Fund Holders: 18
Olaplex Holdings, Inc. (NASDAQ:OLPX) is a specialty retailer that develops, manufactures, and sells hair care products. The company offers hair care shampoos and conditioners for treatment, maintenance, and hair protection. The stock has been under pressure, going by the 34% selloff in 2024, as the company faced a challenging landscape hurt by high inflation levels.
Nevertheless, Olaplex Holdings, Inc. (NASDAQ:OLPX) succeeded in maintaining high gross margins of 71%, even with revenues declining by 9% in the past 12 months. The beauty and personal care sector is still undergoing changes as a result of shifting consumer tastes, new technology, and heightened competition. Consequently, the company operates in an industry where growth and market share depend on innovation and brand loyalty.
Olaplex Holdings, Inc. (NASDAQ:OLPX) is in the process of releasing a thorough long-term roadmap and future vision. The strategic plan will cover consumer trends and market opportunities that Olaplex Holdings can take advantage of because of its innovative products and strong brand. It is anticipated that these actions taken together will increase its market share.
5. Molina Healthcare, Inc. (NYSE:MOH)
Scion Asset Management’s Stake Value: $10.34 Million
Number of Hedge Fund Holders: 37
Molina Healthcare, Inc. (NYSE:MOH) offers managed healthcare services to low-income families and individuals via Medicaid, Medicare programs, and state insurance marketplaces. The stock has recouped all the losses accrued last year, affirming why it is one of Michael Burry’s top stock picks in 2025. The 7% year-to-date rally comes from investors reacting to improving financial performance.
The health insurer delivered better-than-expected third-quarter results attributed to increased premium revenue from government-backed Medicaid plans. Premium revenue, which increased 18% year over year to $9.7 billion, is a crucial indicator of underlying growth. Furthermore, the insurer increased its Medicaid coverage to approximately 4.9 million people, marking nearly a 4% rise from the same period last year.
Molina Healthcare, Inc. (NYSE:MOH) also succeeded in expanding its current footprint, securing new contracts, and closing strategic acquisitions, all of which helped shrug off the harm caused by Medicaid redeterminations. It has also moved to strengthen its edge on Medicare and other commercial products with the acquisition of ConnectiCare.
Additionally, it has obtained healthcare contracts in Michigan and Idaho as part of its strategic expansion. The Michigan contract is anticipated to last for seven years, with three one-year extensions possible. Molina Healthcare, Inc. (NYSE:MOH) disclosed that it would issue $500 million in senior notes due in 2033, with the proceeds going toward general business operations.
4. Baidu, Inc. (NASDAQ:BIDU)
Scion Asset Management’s Stake Value: $13.16 Million
Number of Hedge Fund Holders: 54
Baidu, Inc. (NASDAQ:BIDU) is a Chinese internet giant that provides online marketing and cloud services through an internet platform. It offers search services, online marketing services, cloud services and other services from AI initiatives. It’s also a major force in computer vision, robotics, machine learning, autonomous driving, and all things artificial intelligence.
While Baidu, Inc. (NASDAQ:BIDU) was a big disappointment going down by 15% in 2024, the stock has started showing signs of bottoming out, going by the 6% gain since the start of the year. The underperformance last year came as Baidu’s core business was negatively impacted by deteriorating macroeconomics in China. Likewise, the core advertising business came under pressure following the integration of GenAI content into search results, which disrupted near-term monetization. Fast forward, the advertising business is showing signs of improvement as the adverse effects of AI search normalize.
Furthermore, with notable developments in AI-driven product transformation and autonomous driving technology, Baidu, Inc.’s (NASDAQ:BIDU) AI-first strategy continues to be a top priority. It is also expected to be a key growth driver in strengthening the company’s edge on search and cloud services.
3. Shift4 Payments Inc. (NYSE:FOUR)
Scion Asset Management’s Stake Value: $13.29 Million
Number of Hedge Fund Holders: 27
Shift4 Payments Inc. (NYSE:FOUR) is a software infrastructure company that provides software and payment processing solutions. Its competitive edge as a software and payment processing company stems from its focus on the resorts, restaurants, sports, and entertainment sectors. Consequently, its revenue growth has averaged 36% over the past two years.
Merchants switching from using multiple software providers to a single system is a major trend propelling Shift4 Payments Inc.’s (NYSE:FOUR) growth. By providing a comprehensive end-to-end system that manages all of a merchant’s requirements for payments, security, reporting, analytics, and more, Shift4 Payments has strengthened its growth prospects. The company has also resorted to acquisitions with sizable customer bases to ramp growth.
Shift4 Payments Inc.’s (NYSE:FOUR) exclusive worldwide partnership with SpaceX’s Starlink broadband service has also improved its market position. The partnership should expand the company’s worldwide payment coverage and give it a competitive advantage in areas where conventional payment infrastructure is not yet available. Its payment has been increasing from $25 billion to $33 billion as of the third quarter of 2024. The sizeable backlog attests to Shift4’s future revenue potential while affirming high demand for the company’s services.
2. JD.com, Inc. (NASDAQ:JD)
Scion Asset Management’s Stake Value: $20 Million
Number of Hedge Fund Holders: 75
JD.com, Inc. (NASDAQ:JD) is a supply chain-based technology and service provider. It offers computers, communication, consumer electronics products, and home appliances. It was one of the best-performing stocks in Michael Burry’s portfolio, rallying 88% in 2024. Likewise, it has started 2025 on a roll, outperforming the market by a 22% gain.
The company’s competitive advantage comes from its recent focus on expanding service offerings and enhancing logistics capabilities. The company’s primary focus is on seizing growth opportunities in supply chain solutions, online marketplace services, and technological advancements. JD.com, Inc. (NASDAQ:JD) has performed admirably in certain product categories. Growth was seen in the General Merchandise and Electronics & Appliances segments, with robust appliance sales cited as a major factor in the third quarter’s strong performance.
The growth prospects of JD.com, Inc. (NASDAQ:JD) are also being reshaped by its strategic shift toward global partnerships and digital innovation. The Chinese e-commerce behemoth is setting itself up for major growth with a historic partnership with Chilean products that aims to generate five billion RMB in sales and a successful Singles Day promotion that saw a more than 20% increase in shoppers. Notwithstanding market difficulties, the company’s strong third-quarter results, aspirational logistics, and healthcare plans point to unrealized potential.
1. Alibaba Group Holding Limited (NYSE:BABA)
Scion Asset Management’s Stake Value: $21.22 Million
Number of Hedge Fund Holders: 115
Alibaba Group Holding Limited (NYSE:BABA) is a Chinese internet giant that provides technology infrastructure that enhances connections between merchants and brands with their users and customers. While the stock is down by about 70% from its all-time highs, it is the biggest holding in Michael Burry’s portfolio. That’s because the company is the heart and soul of China’s burgeoning e-commerce landscape, controlling about 50% market share through Tmall and Taobao platforms.
While Alibaba Group Holding Limited (NYSE:BABA) generates about $60 billion from its online marketplaces, it boasts a highly diversified revenue base. It boasts robust logistics operations through Cainiao and its cloud computing unit, strengthening its footprint amid the artificial intelligence race. Additionally, it flexes its muscles in the international e-commerce scene.
Alibaba Group Holding Limited’s (NYSE:BABA) long-term prospects remain intact, given that Chinese spending is growing. Retail sales have grown every month for two consecutive years, buoyed by China’s GDP growth of 5%. Also, the company has entered the artificial intelligence race with the unveiling of its own Qwen 2.5 Max, billed as much better than DeepSeek’s models.
While we acknowledge the potential of Alibaba Group Holding Limited (NYSE:BABA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BABA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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