I’m a massive fan of Dr. Michael Burry, the man played by Christian Bale in The Big Short, not only because he’s made some incredible (albeit high-stakes) calls, even in the years that followed his big bet against the U.S. housing market, but because he’s a very interesting individual who stands out as the ultimate contrarian. Even when there’s investor resistance, he has conviction. And whenever you match doctor-level smarts (yes, he’s a real medical doctor) with a contrarian mindset and the ability to stay confident in one’s abilities, you could have the formula for market-clobbering results.
Though the Great Financial Crisis (GFC) and the Big Short were a long time ago, I wouldn’t discount Burry’s bets. He’s still making moves and getting pretty stellar results, especially relative to his hedge fund rivals. In this piece, we’ll cover three names that Burry picked up for Scion Asset Management in the second quarter of 2025.
Undoubtedly, Burry was an aggressive seller in the first quarter, paring everything but one name. Now, it looks like he’s back on track to go long on a number of names. Though it’s unknown whether Burry bought into that Liberation Day sell-off that happened in the second quarter, I certainly wouldn’t be surprised if he treated the correction as an opportunity to pick up merchandise at a discount.
Once again, Burry’s decision to sell in the first quarter was an incredibly bold call that was absolutely the right one to make. And the timing couldn’t have been better. Mark it down as another genius move by the great Dr. Burry.
Lululemon
Lululemon (NASDAQ:LULU | LULU Price Prediction) was Scion’s biggest buy for the second quarter, and it’s perhaps one of the most unfashionable of late. Indeed, the Canadian brand was one of the go-to brands in the athleisure scene a few years ago.
With more rivals bringing their mat to the yoga room, though, I question the power of the brand and its ability to command a premium. With sales in a rough spot and additional markdowns likely on the way, Lululemon could feel more of a pinch in the margins.
Enough with the negative, though. Lululemon goes for 13.7 times trailing price-to-earnings (P/E), a multiple that would have been ridiculous just a year and a half ago, when Lululemon was on top of the yoga world. Although I understand the deep-value proposition behind the name, LULU still stands out as a bit risky, especially if its rival, Alo, is able to outstretch it for a larger share of the fiercely competitive athletic apparel market.
At a more than 60% discount, Lululemon seems tempting. But the big Burry bet isn’t one I’d look for to follow the man into quite yet.
Regeneron Pharmaceuticals
Regeneron Pharmaceuticals (NASDAQ:REGN) is another interesting dip-buy that most other retail investors may be sleeping on. The stock cratered close to 60% before recovering partial ground. Now down 52% from the peak, Scion has essentially picked up shares at close to half price. Indeed, Regeneron has a robust portfolio and a pipeline with plenty of promise.
At 14.6 times trailing P/E, you’re getting a pretty solid biopharma name for far less than a market multiple. With a strong quarter behind it and a hopeful bottom already in the charts, perhaps Regeneron stands out as one of the best deep-value bets for investors looking to bet on biotech.
UnitedHealth Group
A lot of smart money managers loaded up on UnitedHealth Group (NYSE:UNH) in the second quarter. The stock crashed hard, and while a turnaround could take time, I do think the stock could be ready to ascend again now that managers are already hard at work on measures to turn things around.
There are a lot of industry headwinds right now, but there are company-specific matters the firm can improve upon as the name climbs out of a historic rut. The stock goes for 13.4 times trailing P/E to go with a nearly 3% yield. Fans of the name a year ago should be looking to double down after the walloping the managed health provider took earlier this year. UNH stock isn’t just another bruised stock with a P/E ratio in the low-teens. It’s a hedge fund favorite, and it’s not hard to see why.
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