Michael Burry, the investor immortalized in “The Big Short,” has once again taken a contrarian stance against the market consensus. Scion Asset Management’s latest 13F filing, released around early November 2025, reveals a concentrated portfolio of roughly $44 million where nearly 80% is allocated to bearish put options on Palantir Technologies and Nvidia. The move signals deep skepticism toward the artificial intelligence (AI) stock frenzy that has driven these companies to lofty valuations.
The Core Bearish Bet: Palantir and Nvidia Puts
Scion holds puts on 5 million shares of Palantir and 1 million shares of Nvidia. These options give the firm the right to sell the stocks at a predetermined price, profiting if the share prices decline. The sheer size of the wager—relative to the portfolio’s total value—indicates a high-conviction view that the AI euphoria has overshot fundamental reality. Palantir’s price-to-earnings ratio has soared past 100, while Nvidia’s multiples remain elevated despite strong earnings growth. Burry appears to be betting that gravity will eventually reassert itself.
This is not Burry’s first rodeo in shorting high-flying tech names. He previously held put options on Tesla and broad market indices, though those wagers often took months or years to pay off—and in some cases ended in losses when his timing proved premature. Critics note that being early can be indistinguishable from being wrong in the short term.
New Bullish Positions: Healthcare and Energy on the Rise
While leaning heavily against AI, Scion also added call options on pharmaceutical giant Pfizer and oilfield services company Halliburton. These bullish bets reflect a rotation into sectors with defensible cash flows and cyclical upside. Pfizer’s patent-protected drug portfolio and vaccine pipeline provide steady revenue, while Halliburton stands to benefit from rising global energy capital expenditure.
On the equity side, Scion doubled its stake in Lululemon Athletica, opened a new position in student lender SLM Corporation (Sallie Mae), and picked up managed-care provider Molina Healthcare. These picks target U.S. consumer resilience and healthcare policy tailwinds. Lululemon continues to dominate the premium athleisure market, while SLM gains from rising student loan origination volumes.
Portfolio Rotation: Exiting China and Health Insurers
Equally telling are the exits. Scion fully liquidated its holdings in Chinese e-commerce stocks—including Alibaba and Pinduoduo—and sold out of U.S. health insurance giants such as UnitedHealth. The moves suggest Burry is avoiding geopolitical risks tied to China and regulatory overhangs in the U.S. healthcare system. Instead, he is concentrating capital in areas with clearer catalysts and fewer policy uncertainties.
Strategy Breakdown and Risk Considerations
Scion’s portfolio now consists of just three core equity positions (Lululemon, Molina, SLM) and four options trades, but options dominate the directional exposure. This is not a diversified allocation but a high-conviction chessboard built for volatility. If AI stocks continue their rally, the put options will likely expire worthless; if sentiment shifts or earnings disappoint, the payoff could be outsized.
The filing serves as a reminder of Burry’s style: skeptical of consensus narratives, opportunistic where valuations appear reasonable, and unafraid to make large, transparent bets. Whether his bearish AI thesis proves prescient or premature remains to be seen. As always, timing in options markets is critical, and even the man who shorted the housing bubble faces the risk of being right too early—or simply wrong.