Anyone who has seen The Big Short movie should recognize Michael Burry, the brilliant and unconventional investor who shot to fame for accurately predicting the U.S. housing market collapse ahead of the 2008 financial crisis. A former Stanford neurology resident, Burry first built a reputation by sharing stock ideas on internet forums back in the early days of online investing. His bet against subprime mortgages made hundreds of millions in profits for his hedge fund, Scion Capital, and cemented his status as one of the sharpest minds on Wall Street.
Fast forward to today, and Burry is once again making bold moves through his Scion Asset Management. In the first quarter, Burry shocked the market by dumping nearly all of his fund’s stocks and loading up on put options. But amid this sweeping selloff, one surprising name that survived in his portfolio was Estée Lauder (EL). Despite being deep in the red this year, the struggling beauty giant has held a firm place in Burry’s portfolio.
