In this article, we will examine the Michael Burry Stock Portfolio: 6 Stocks to Buy.
Michael Burry needs no introduction on Wall Street. He is best known for accurately predicting the 2008 financial crisis and betting against the US housing market, from which he went on to make a fortune. The legendary investor was once again making waves by selling off numerous positions through his fund, Scion Asset Management, in May.
Burry slashed the number of stocks in his portfolio to roughly half. He exited Chinese stocks and placed massive bets against the US tech sector in response to President Donald Trump’s vicious trade war. The selloff appears uncalled for as the overall market has rallied off the April lows, powering to record highs, driven by blockbuster gains in the technology sector.
Amidst the portfolio adjustments, investors continue to monitor the legendary investor’s strategy, as he has consistently demonstrated a keen understanding of the markets. Burry is known for his contrarian investment style that often entails going against the crowd. Likewise, he is a value investor, always looking for undervalued companies with strong fundamentals.
The strategy enabled him to generate $100 million personally at the height of the housing crisis in 2008, and he also ultimately delivered more than $700 million to those invested in his funds. Scion Asset Management boasts of a solid 11.01% 1-year return and 113.55% return over the past five years.
While focus remains on tech stocks amid the artificial intelligence boom, Burry has tweaked his portfolio, opting to focus on plays in the healthcare, retail, and biotechnology sectors. Likewise, he has resorted to call and put options on some of the big names on Wall Street as part of a diversification strategy.
Michael Burry of Scion Asset Management
Our Methodology
We scanned Scion Asset Management’s portfolio and focused on the firm’s stock holdings as of the end of the second quarter of 2025 and detailed how popular they are among elite hedge funds. We have also detailed the stock’s performance from the end of the second quarter (June 30, 2025) to October 9, 2025 to provide insights into whether Burry was right or wrong for betting on the stock. Finally, we ranked the stocks in ascending order based on Scion Asset Management’s equity stakes in them.
Why are we interested in the stocks that hedge funds pile into? The reason is straightforward: our research has demonstrated that we can outperform the market by replicating 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Michael Burry Stock Portfolio: Stocks to Buy
6. UnitedHealth Group Incorporated (NYSE:UNH)
Scion Asset Management Equity Stake: $6.24 Million
Stock Performance (end Q2-October 9): 16.58%
Number of Hedge Fund Holders: 159
UnitedHealth Group Inc. (NYSE:UNH) is one of the best stocks in Michael Burry’s stock portfolio. On October 3, the company’s shareholders proposed the adoption of an independent board chair. The position is currently held by Stephen Hemsley, Chief Executive Officer.
While Hemsley has served as board chair since 2017, he assumed the role of CEO in May following Andrew Witty’s resignation. “Now, a single person holds both roles — which is as far as it gets from the independent oversight shareholders so critically need,” the proposal says.
The push for an independent board chair comes as the health insurer tries to regain the confidence of shareholders. The company has come under shareholder pressure following two straight quarters of earnings misses. It has also revised its 2025 Outlook due to soaring medical costs and shortfalls in government-backed plans.
UnitedHealth Group Incorporated (NYSE:UNH) is a health care company that offers consumer-oriented health benefit plans and services. It also provides care delivery, care management, wellness, consumer engagement, and health financial services to patients.
5. MercadoLibre, Inc. (NASDAQ:MELI)
Scion Asset Management Equity Stake: $7.84 Million
Stock Performance (end Q2-October 9): -14.78%
Number of Hedge Fund Holders: 116
MercadoLibre Inc. (NASDAQ:MELI) is one of the top stocks in Michael Burry’s stock portfolio. On October 3, JPMorgan reiterated a ‘Neutral’ rating on the stock but cut the price target to $2,600 from $2,700. The cut comes amid concerns that the company faces competitive pressures in Brazil, which could trigger an earnings miss in the third quarter.
The company is reportedly facing competition from Amazon and Shopee. To start, Amazon has intensified its efforts in the country with the establishment of new logistics facilities and pickup locations. In addition, the US e-commerce giant has waived Fulfillment by Amazon (FBA) fees, aiming to take on MercadoLibre.
“We recap recent developments in the Brazilian e-commerce competitive environment, which reinforce our view that growth should come at a higher cost to MELI in the coming years,” JPMorgan analysts wrote.
Amid the competitive pressure, JPMorgan expects the company to deliver $7.44 in Q3 revenue, which would be 3% above consensus estimates. Nevertheless, it forecasts EBIT of $750 million, which would be below $811 consensus estimates. Earnings are also expected to average $477 million, compared to the previously expected $551 million.
MercadoLibre Inc. (NASDAQ:MELI) is a Latin American technology company that provides e-commerce, fintech, and logistics solutions to individuals and businesses. It operates a large online marketplace for buying and selling goods. Its payment platform, Mercado Pago, enables various online and offline transactions and offers financial services.
