The Big Shift: 5 Surprising Takeaways from Michael Burry’s Q3 2025 Portfolio Reveal

Michael Burry, the Scion Asset Management founder immortalized in The Big Short for his billion-dollar bet against the housing bubble, has long been the market’s premier “ick factor” investor. His reputation for identifying “rare birds” — undervalued, misunderstood, or temporarily distressed assets — makes every regulatory disclosure a high-signal event. However, the latest **michael burry portfolio update, detailed in the [michael burry unitedhealth 13f](https://www.13radar.com/guru/michael-burry?tab=stock-picks) filing 2025**, reveals a strategy shift that is as much about what is missing as what was bought.

1. The Great Liquidation: A $31 Billion AUM Collapse

From a quantitative perspective, the most staggering takeaway is the precipitous drop in reported Assets Under Management (AUM). On June 30, 2025, Scion Asset Management reported a portfolio value of $32.7 billion. By the September 30 filing, that figure had plummeted to $1.38 billion — a staggering 95.8% reduction in reported long-equity value.

This suggests a total portfolio liquidation or a massive shift into cash and non-reportable instruments. Burry has historically moved to the sidelines when he perceives systemic risk, and this “Great Liquidation” suggests a defensive posture that far outweighs any individual stock pick.

2. The High-Turnover “Purge” and the 3.98% Equity Strategy

The Q3 filing reflects an aggressive 57.8% turnover rate. Burry executed a total divestment of five major positions: The Estée Lauder Companies (EL), Bruker Corporation (BRKR), Regeneron Pharmaceuticals (REGN), MercadoLibre (MELI), and UnitedHealth Group (UNH).

Remarkably, four of these — UNH, MELI, REGN, and BRKR — were “New Buys” in the previous quarter. This indicates a high-velocity trading strategy where conviction is tested and discarded within a single 90-day window. Following this purge, Scion holds just 8 total positions: 3 stocks, 4 options, and 1 bond. Quantitatively, these three equity positions represent a minuscule portion of the reported $1.38 billion AUM:

• Molina Healthcare (MOH): 1.73% of portfolio
• lululemon athletica (LULU): 1.29% of portfolio
• SLM Corporation (SLM): 0.96% of portfolio

The combined equity weight of just 3.98% leaves approximately 96% of the portfolio’s value tied up in options and a single bond position, signaling that Burry is betting on volatility and macro shifts rather than a broad basket of stocks.

3. The Healthcare Swap: Exiting UnitedHealth for Molina

The **michael burry unitedhealth 13f filing** provides the definitive confirmation of his exit from the diversified insurance giant. Burry liquidated his entire 20,000-share stake in UnitedHealth (UNH), valued at $6.24 million, after holding it for only one quarter.

In its place, he initiated a “Significant New Position” in Molina Healthcare, Inc. (MOH), purchasing 125,000 shares valued at $23.92 million. While UNH is a diversified behemoth, MOH is a more specialized player focused on government-sponsored programs like Medicaid. This swap perfectly illustrates Burry’s preference for “Special Situations” over general sector exposure.

“He seeks ‘rare birds’ — companies that are misunderstood, undervalued, or facing temporary issues (the so-called ‘ick factor’).”

4. Conviction in Athleisure: The Lululemon Build-Up

Amidst the broader portfolio purge, lululemon athletica inc. (LULU) emerged as a rare point of increasing conviction. Burry doubled down on the position he initiated in Q2, adding 50,000 shares to bring his total to 100,000 shares ($17.79 million).

As a “Quantitative Investment Analyst” would note, the fact that LULU survived a 57.8% turnover event and saw a 100% position increase suggests it is Burry’s primary vehicle for capturing consumer discretionary upside. The rapid conviction build-up — moving from a new buy to a doubled-down core holding in just 0.25 years — stands in stark contrast to his immediate exits elsewhere.

5. Deep Value in Financials: The SLM Entry

Burry’s final major move was a new entry into SLM Corporation (SLM), commonly known as Sallie Mae. He initiated a stake of 480,054 shares valued at $13.29 million.

SLM fits the classic Burry profile: a “Deep Value” play in an unloved sector (Student Loans) often fraught with regulatory complexity and political headline risk. For Burry, these complexities create the “Margin of Safety” required for “Asymmetric Returns” — where the market’s distaste for the sector’s “ick factor” has depressed the price so significantly that the potential for a rerating far outweighs the downside risk.

Conclusion: The Hunt for Asymmetry

The Q3 2025 reveal shows an investor who has stripped his equity portfolio to the bone. By exiting growth-oriented names like MercadoLibre and diversified giants like UnitedHealth, Burry has concentrated his remaining capital into just three high-conviction plays (MOH, LULU, SLM) while keeping the vast majority of his reported AUM in options and debt.

This move toward extreme concentration and liquidity suggests that Burry is once again positioning for a major market dislocation. The question for retail investors is simple: In an era of passive index dominance, do you have the stomach to follow a strategy that liquidates 95% of its value to wait for the next “Big Short” opportunity?