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If Michael Burry Explained His Q2 2025 Portfolio Moves Himself
If you want the truth, you have to look at the filings. If you want the context, you have to hear the thinking. People build whole narratives out of my trades without ever asking why I did them. So here’s Q2 2025, as if Dr Burry were explaining the positions himself.
UnitedHealth Group (UNH) – 350,000 Calls, 20,000 Shares
Health insurance is one of the last oligopolies left. Scale, data, and inertia — that’s the moat. Employers don’t change carriers when they’re uncertain about the economy; they stick with what they know.
Yes, UnitedHealth has gotten slammed recently. Federal investigations into billing practices, rising medical costs, and poor risk management in patient risk pools across the industry have pulled the stock down hard. I don’t ignore that — I embrace it. This is exactly when you get an entry point: when sentiment is ugly, headlines are loud, and the core business still prints cash.
The political-risk discount is overdone, claims trends are not spiraling out of control, and cost controls are intact. I bought calls for convexity and shares for stability. I expect the Street to re-rate this higher when they realize the fundamentals are boringly strong.
Regeneron Pharmaceuticals (REGN) – 200,000 Calls, 15,000 Shares
Regeneron doesn’t get the headlines. It doesn’t need them. Dupixent is still expanding, margins are over 50%, and the pipeline isn’t dependent on one miracle drug. I don’t need hype here — I need predictable cash flows in a market that’s increasingly allergic to them, plus the stock is down 51% over the last year, really primarily due to one single trial failure and some temporary, recent regulatory stumbles. Calls give me upside if the Street finally recognizes the durability of this story.
Lululemon (LULU) – 400,000 Calls, 50,000 Shares
The stock is down almost 50% this year. The company didn’t suddenly forget how to sell leggings. This is sentiment collapse, not a terminal business decline. Inventory normalization, Chinese consumer demand recovery, and sticky brand loyalty are still here–oh, and upcoming rate cuts in the United States. Calls let me participate in the upside if the market comes to its senses, and shares give me a baseline if it takes longer.
VF Corporation (VFC) – 1,500,000 Calls
Ugly chart. Ugly headlines. Dividend cut already priced in. Cost cuts and a possible wholesale rebound are ignored because no one wants to touch this name. This is a pure sentiment trade. If the narrative changes, even slightly, the upside will be violent, especially when considering rate cuts are around the corner. I’m here for that asymmetry.
JD.com (JD) – 1,000,000 Calls
Chinese e-commerce is the most hated corner of global equities right now. JD’s logistics network is unmatched, and its government alignment keeps it safer than most peers. The market doesn’t care yet. Fine. Cheap calls mean I can wait for a shift in policy tone or sentiment without much bleed.
Meta Platforms (META) – 100,000 Calls
Reality Labs is a cash fire, but the core ad business is a money-printing machine, and should perform even better when the Fed begins gradually easing during 2025, 2026. AI targeting is already improving ad ROI for clients, and that will flow through to margins. I don’t buy hype, but I do buy cash generation when it’s mispriced. Calls here are cheap exposure to that rerating.
Alibaba (BABA) – 250,000 Calls
Regulatory headwinds have eased. Core commerce is still solid. The problem is Western sentiment — it’s anchored in 2021’s China crackdowns. If sentiment even partially recovers, this will re-rate sharply. Calls are the right tool when the market’s perception gap is this wide.
ASML (ASML) – 25,000 Calls
You can’t make leading-edge chips without ASML’s machines. It’s a monopoly in high-end lithography. Demand may wobble in the short term, but AI build-out needs exactly what ASML sells and rate cuts will supplement in a major way. This is the levered bet on tech-capex recovery, without owning the crowded U.S. megacaps directly.
Estée Lauder (EL) – 500,000 Calls, 150,000 Shares
The stock got punished after guidance cuts but is actively turning itself around. Too much negative sentiment, especially with rate cuts around the corner. Beauty is high-margin, resilient, and brand-loyalty-driven. Chinese tourism is coming back — slowly, but it’s coming back. I bought calls to capture the snapback and shares to own the baseline recovery.
MercadoLibre (MELI) – 3,000 Shares
Latin America’s e-commerce and fintech leader. Volatile, yes, but with a long growth runway, and with monetary easing coming into the frame along with negative sentiment surrounding American equities. I don’t need options here; I’m content to just own the equity and let the compounding do the work.
Bruker (BRKR) – 250,000 Shares
Specialized scientific instruments. Low correlation to the consumer cycle. Quietly consistent — exactly what you want when everything else in your portfolio can move 10% in a day.
The Big Shift – Closing the Bearish Book
I closed every major put position: NVDA, PDD, JD, BABA, BIDU, TCOM. When sentiment and positioning swing this far bearish, shorts become crowded, and crowded shorts are death in a potential easing cycle. You don’t short into a setup where a small change in tone can cause a squeeze.
“I’m not bullish on the economy. I’m bullish on mispricings. This isn’t an ‘all-clear.’ It’s a recognition that cheap volatility and sector-specific fear can make money even if the macro keeps sputtering. I don’t trade narratives. I trade dislocations.”
DISCLAIMER: This analysis of the aforementioned stock security is in no way to be construed, understood, or seen as formal, professional, or any other form of investment advice. We are simply expressing our opinions regarding a publicly traded entity.
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