Michael Burry, renowned for predicting the 2008 mortgage crisis and famously depicted in the film "The Big Short," has once again captured the market's attention with his updated investment strategies for 2025. Under his hedge fund, Scion Asset Management, Burry’s portfolio experienced remarkable growth, posting an impressive increase of 74.24% over the course of 2024, far outpacing the S&P 500 index. This performance has many investors curious about which sectors or companies Burry is focusing on this year.
One of the standout investments recently revealed by Burry is Oscar Health, which operates as a digital health insurance platform. Despite facing challenges since its initial public offering (IPO) back in 2021, Oscar Health seems to be turning the tide. According to reports, the company achieved its first profitable year during the first quarter of 2024, signaling potentially transformative shifts within the organization. Following the announcement of Burry's stake, Oscar Health's stock surged by 23.84%, drawing the eye of many market participants eager to capitalize on what they perceive as newly unveiled potential.
Burry’s holdings include about 200,000 shares of Oscar Health (ticker OSCR). The stock's recent spike aligns with its valuation adjustments, reflecting optimism among investors. The closing price on February 18 showed significant momentum, and during early trading on February 19, stocks continued to rise, reflecting renewed investor confidence.
Market watchers attribute this resurgence not only to Burry's investment but also to the broader allure of the stock, which had recently hit its lowest valuation point within the last 12 months prior to this uptick. Despite subpar earnings released on February 4, Burry's belief in Oscar's turnaround has bolstered market confidence.
Meanwhile, since stepping away from his 2023 short position against the semiconductor sector, Burry has placed substantial bets on major Chinese companies, which are considered some of the more controversial allocations within his portfolio. His investments include significant stakes in Alibaba (NYSE: BABA), JD.com (NASDAQ: JD), and Baidu (NASDAQ: BIDU). Starting from September 2024 and intensifying through 2025, these investments appear to be paying off handsomely.
China’s benchmark CSI 1,000 index has gained approximately 11.25% year-to-date, driven by anticipation of financial stimuli for Chinese equities. Burry's largest investment, Alibaba, has emerged as one of the standout performers, underlined by its substantial share growth. BABA's stock rallied significantly after the launch of its advanced artificial intelligence model, the Qwen 2.5, which helped drive the share price to levels not seen since 2021. Reportedly, Burry's stake, valued at $12.7 million on December 31, 2024, has seen gains of over 70% as the investment recently yielded profits near $9 million.
Similarly, Baidu, which ranked as Burry's second-largest holding at $10.5 million, has also benefitted from the rising interest and demand for AI solutions. The company announced the rollout of its AI assistant, free of charge, starting April 1. This initiative is notable as it coincides with its collaboration with Apple to introduce Apple Intelligence to the Chinese market. Year-to-date, Baidu’s shares witnessed gains of approximately 10.72%, netting Burry another significant profit of around $1.1 million.
Not to be outdone, JD.com has maintained steady growth. Once Burry's largest Chinese stock, it now stands third, with its stock price climbing about 22.48% year-to-date, translating to gains surpassing $2.3 million for the trader this year. JD.com continues to draw attention by broadening welfare coverage for gig workers, which emphasizes its relevance and responsiveness within China’s employment and economic ecosystem.
Overall, Burry's investments across these tech-heavy positions exemplify his strategic foresight and willingness to engage with potentially high-reward but volatile environments. Collectively, the growth of Michael Burry's investments within these three major firms equates to approximately $12.4 million since the beginning of 2025. It’s clear he remains attuned to market shifts, and his latest moves will continue drawing scrutiny from investors eager to glean insights from his bold strategies.
Michael Burry’s sharp focus on recovering stocks and technological innovation underlines his adaptability and resilience within changing market landscapes. His ability to identify and invest in opportunities, such as Oscar Health alongside Chinese tech giants, showcases his formula for recognizing value even amid volatility.