The prototype of "The Big Short" perfectly timed the rhythm in Q2: "buying the dip" in US stocks, flipping short to long bets on Chinese concept stocks, and having a "tacit understanding" with Buffett to be bullish on UnitedHealth

According to information from Zhitong Finance, based on disclosures from the U.S. Securities and Exchange Commission (SEC), Michael Burry, the hedge fund manager known for the Hollywood movie "The Big Short," has submitted the second quarter U.S. stock holdings report (13F) for his Scion Asset Management, covering the period up to June 30, 2025.

Statistics show that Scion's total market value of holdings in the second quarter was approximately $580 million, compared to about $199 million in the previous quarter, representing a quarter-on-quarter increase of 191.5%. The asset management company added 14 new stocks to its portfolio in the second quarter of this year, increased its position in 0 stocks, reduced its position in 1 stock, and completely exited 6 stocks. The top ten holdings accounted for 92.37% of Scion's total market value.

Among the top ten holdings, UnitedHealth call options (UNH.US, CALL) ranked first, and it was also a new position established by the fund in the second quarter, with a market value of $190 million. In addition, the company also purchased $6 million worth of UnitedHealth stock.

It is noteworthy that Burry's bullish stance on UnitedHealth mirrors the recent actions of Warren Buffett's Berkshire Hathaway, which has also significantly increased its holdings in this healthcare company this year.

This strategy is particularly striking due to its timing and scale. According to data, UnitedHealth's stock is currently trading near a five-year low, down 57.4% from its 52-week high of $630.73.

These holdings indicate that Burry and Berkshire are optimistic about the industry's recovery prospects, especially since the expected rates for the U.S. "Medicare Advantage" plans in 2026 have already exceeded actual levels, while UnitedHealth Group's competitive advantage remains solid despite recent setbacks.

Burry's bullish position in UnitedHealth marks a significant shift from his typically "bearish" investment strategy. This "Big Short" investor seems to be seeking value in this well-quality company that has been hit hard, anticipating a rise in stock prices after UnitedHealth navigates through turbulent times.

From the changes in position ratios, "big short" Michael Burry's Scion's top five purchases in the second quarter were: UnitedHealth call options (UNH.US, CALL), Regeneron Pharmaceuticals call options (REGN.US, CALL), Lululemon call options (LULU.US, CALL), Meta call options (META.US, CALL), and Estée Lauder call options (EL.US, CALL). The purchased call options are mostly heavy assets of the fund.

The top five sales were: NVIDIA put options (NVDA.US, PUT), Alibaba put options (BABA.US, PUT), Pinduoduo put options (PDD.US, PUT), JD put options (JD.US, PUT), and Trip.com put options (TCOM.US, PUT).

In addition, in terms of individual stocks, Scion newly purchased companies in the consumer and healthcare sectors such as Lululemon, UnitedHealth, Regeneron Pharmaceuticals, and Brook (BRKR.US). The fund also reduced its holdings in Estée Lauder from 200,000 shares to 150,000 shares. The fund currently holds 50,000 shares of Lululemon, 15,000 shares of Regeneron, 20,000 shares of UnitedHealth, and 250,000 shares of Brook. Additionally, it newly purchased 3,000 shares of MercadoLibre (MELI.US).

Overall, Scion held a more optimistic attitude towards companies in different industries and regions in the second quarter. Previously, the company had shorted Chinese companies due to the Trump administration's consideration of imposing tariffs. Burry's investment portfolio in the second quarter sharply contrasted with the strategy of shorting Chinese concept stocks in the first quarter when Trump announced high tariffs on goods imported from China. Moreover, popular Chinese tech stocks began to enter an upward channel after plummeting due to tariff news at the beginning of the second quarter, showing strong gains during that quarter.

In addition to selling the aforementioned put options on Chinese concept stocks, Scion also purchased call options on Alibaba and JD. At the same time, the fund bought call options on Dutch semiconductor supplier ASML (ASML.US), as well as call options on other American companies such as Meta (META.US) and VF Corporation (VFC.US).

After Trump announced the "Liberation Day" tariff policy on April 8, the S&P 500 index briefly fell to its lowest point in nearly a year, followed by a rebound in the U.S. stock market. In June, both the S&P 500 index and the Nasdaq index reached new closing highs, ending the best-performing quarter in the past year, as hopes for a trade agreement and possible interest rate cuts alleviated investor uncertainty. Both indices achieved double-digit gains by the end of the second quarter. The S&P 500 index rose by 10.57% during this period, while the Nasdaq index increased by 17.75%

It is worth noting that regulatory documents show that Barry reduced the number of companies in his portfolio by about half in the first quarter, down to seven. Scion liquidated almost all of its stocks in the first quarter of 2025, retaining only Estée Lauder's shares, while establishing put option positions on NVIDIA and several Chinese technology companies.

Barry's adjustment of the portfolio aligns with the surge from the tariff turmoil in April to the current market highs. As global trade policies and central bank decisions influence investor sentiment, this tilt towards areas with greater growth potential indicates a resurgence of investor interest in risk, betting that the economy will continue to maintain a loose stance