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Inside Michael Burry’s Latest 13F: Why Scion’s Portfolio Is a Masterclass in Contrarian Logic
Michael Burry—the man who predicted the 2008 housing collapse—has done it again. In Scion Asset Management’s Q3 2025 13F filing, Burry revealed a portfolio that looks nothing like Wall Street’s. Massive new shorts on AI darlings, selective longs in healthcare and energy, and the kind of macro contrarianism that could only come from the man who thrives when everyone else is euphoric.
This isn’t a random reshuffle. It’s a calculated, data-driven statement about where the next cracks could form in the market. Let’s break down what Burry’s moves mean—and what they say about his outlook for 2026.
1. Palantir (PLTR) PUT – $912 Million (New Position, 66% of Portfolio)
Translation: Burry’s biggest bet is against one of the loudest voices in the AI boom.
Why he did it:
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AI hype fatigue: Palantir’s government contracts and “AI platform” story have catapulted the stock into meme territory again, with valuations detached from fundamentals. Burry has always shorted exuberance—this smells a lot like Tesla circa 2021.
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Margin risk: Government clients are pushing back on contract pricing, and competition from defense-tech startups is quietly eating into Palantir’s moat.
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Retail mania: PLTR’s retail following has turned every dip into a buying frenzy. That’s exactly when Burry gets short.
Interpretation: Burry’s not betting on Palantir’s failure—he’s betting on reality catching up with its valuation. His track record suggests he’s usually early, but rarely wrong.
2. NVIDIA (NVDA) PUT – $186.6 Million (New Position, 13.5% of Portfolio)
Translation: He’s shorting the heart of the AI supply chain.
Why he did it:
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Valuation blowout: NVIDIA has become the most crowded trade in the world—priced for perfection in a market where perfection rarely lasts.
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Policy risk: Trump’s foreign policy reset and U.S.-China tech export restrictions create meaningful downside for NVIDIA’s global sales.
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Earnings asymmetry: Even a minor slowdown in GPU demand could vaporize hundreds of billions in market cap.
Interpretation: This is Burry’s macro hedge against AI exuberance. He’s not saying NVIDIA’s a bad company—just that its price assumes infinite growth in a finite world.
3. Pfizer (PFE) CALL – $152.8 Million (New Position, 11% of Portfolio)
Translation: Burry’s quietly betting on a big pharma comeback.
Why he did it:
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Deep value setup: Pfizer has been cut in half since its COVID-era peak. Its pipeline, however, is quietly regenerating—especially in obesity drugs, oncology, and mRNA flu.
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Interest-rate hedge: Healthcare has historically outperformed during late-cycle slowdowns when rates are high and GDP decelerates.
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Optionality: With valuations at a 10-year low and new blockbuster drugs entering Phase 3, Pfizer represents asymmetric upside.
Interpretation: A classic Burry contrarian move—buy what everyone has stopped paying attention to.
4. Halliburton (HAL) CALL – $61.5 Million (New Position, 4.5% of Portfolio)
Translation: A defensive inflation hedge disguised as an oilfield play.
Why he did it:
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Energy fundamentals: OPEC+ supply discipline, Trump’s pro-drilling policy stance, and rising global defense spending all point to higher oilfield activity.
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Valuation comfort: Halliburton trades at less than 10x forward earnings and gushes free cash flow.
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Capex revival: U.S. and Middle East producers are reinvesting in upstream projects—exactly where HAL makes its money.
Interpretation: Burry’s not chasing oil prices; he’s playing the picks-and-shovels angle—making money on the infrastructure behind energy.
5. Molina Healthcare (MOH) – $23.9 Million (New Position, 1.7% of Portfolio)
Translation: Burry’s betting on privatized healthcare’s quiet expansion under Trump’s second term.
Why he did it:
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Trump-era tailwinds: The administration’s deregulation push at HHS and CMS gives states more autonomy over Medicaid funding. That means more private managed-care outsourcing, which is Molina’s bread and butter.
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Leanest operator in the space: Molina runs with administrative costs nearly 200 bps below Centene (CNC) and Elevance (ELV). It doesn’t rely on employer-based insurance, shielding it from pricing pressure.
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Counter-cyclical growth: If the economy slows, Medicaid rolls expand. Every new enrollee under contract equals incremental, predictable revenue.
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Policy-proof cash flow: Molina doesn’t depend on elective procedures or discretionary spending—its contracts are guaranteed, inflation-adjusted, and largely immune to political noise.
Interpretation:
This isn’t a speculative trade—it’s a policy arbitrage position. Burry’s betting that a Trump-led CMS will deepen state partnerships with MCOs like Molina, expanding privatized Medicaid and unlocking earnings leverage. In a portfolio full of volatility, Molina is his low-drama compounder—steady, profitable, and perfectly positioned for a regulatory tailwind.
6. Lululemon (LULU) – $17.8 Million (Doubled Position)
Translation: A contrarian consumer comeback play.
Why he did it:
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Oversold quality: After a 40% slide earlier in 2025, Lululemon’s fundamentals remain stellar—strong margins, brand loyalty, and no debt.
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Reopening pivot: As discretionary retail normalizes post-inflation, LULU is regaining traction with both premium and international customers.
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Short-covering setup: Heavy short interest makes it ripe for a reversal once comps stabilize.
Interpretation: Burry’s calling the bottom on premium retail. In typical fashion, he’s buying what the market just gave up on.
7. SLM Corporation (SLM) – $13.3 Million (New Position)
Translation: Burry’s niche financial bet on the “higher-for-longer” rate regime.
Why he did it:
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Interest income expansion: Sallie Mae thrives on elevated lending rates. The longer the Fed stays restrictive, the higher SLM’s margins.
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Cyclical tailwind: College enrollment typically rises during economic uncertainty—driving loan growth even as delinquencies stay low.
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Political insulation: The administration’s focus on vocational programs and targeted relief means private loan demand remains intact.
Interpretation: A macro play on credit differentiation—SLM benefits from exactly the environment that punishes speculative growth stocks.
8. Berkshire Hathaway (BRK.B) – $13.1 Million (New Position)
Translation: Burry’s ballast.
Why he did it:
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Safe liquidity: With over $250 billion in cash and Treasuries, Berkshire is effectively a high-yielding bond wrapped in an equity shell.
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Defensive diversification: Exposure to insurance, utilities, energy, and Apple provides stability without sacrificing upside.
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Flight-to-quality trade: As Burry loads up on volatility (through PLTR and NVDA puts), Berkshire anchors the portfolio in real cash flow.
Interpretation: It’s the financial equivalent of adding ballast to a ship before rough seas.
What He Dumped—and Why
Burry exited all of his previous high-fliers:
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Meta (META), Regeneron (REGN), and UnitedHealth (UNH): Booked profits on post-earnings strength and reallocated into undervalued defensives like Molina.
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Alibaba (BABA), JD.com (JD), ASML, and Lululemon CALLS: Reduced international and high-beta exposure.
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Estée Lauder (EL) and others: Cut discretionary and rate-sensitive consumer holdings.
Interpretation: He’s stripping away the fat—rotating from growth to value, from optimism to optionality.
The Big Picture: A Barbell Built for Chaos
Burry’s portfolio is a masterclass in asymmetry:
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Short euphoria: Palantir and NVIDIA PUTs hedge against an AI bubble bursting.
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Long resilience: Pfizer, Halliburton, Molina, and Berkshire are designed to compound quietly through policy shifts, inflation, and rate volatility.
He’s positioned for a scenario where liquidity tightens, the AI trade deflates, and fundamentals reclaim center stage. It’s not a doomsday bet—it’s a preparation for rationality’s comeback.
Bottom Line
Michael Burry’s Q3 2025 moves aren’t random—they’re surgical. He’s shorting hype, buying durability, and hedging political noise with policy clarity.
If his contrarian instincts are right again, the next correction won’t start in housing or banking—it’ll start in AI stocks priced like religions and end in cash-flow machines trading like they’re forgotten.
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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