Scion Asset Management revealed a radically concentrated $1.38 trillion portfolio, pivoting hard into a 66.0% position in Palantir Technologies. Fellow new stakes in Nvidia and Pfizer back up that tech-heavy bet, consuming 13.5% and 11.1% of the fund’s capital. Just one prior holding survived the purge, creating an eight-stock book that signals an abrupt and highly decisive strategic shift.

Michael Burry committed significant capital to new stock positions in Q3 2025. His largest buy, Palantir Technologies (PLTR), accounted for $912.10 billion, a staggering allocation to a company often scrutinized for its government contracts and profitability path. Burry perceives deep value in Palantir’s data analytics capabilities, betting the market misprices its long-term enterprise and defense utility. NVIDIA Corporation (NVDA) secured his second-largest new position at $186.58 billion. This purchase indicates Burry sees a discount even in the chip giant, suggesting he anticipates its AI dominance remains undervalued despite high valuations, or he bought a substantial dip. Pfizer (PFE), a $152.88 billion addition, slots into Burry’s classic value hunting. The pharmaceutical firm grapples with post-pandemic vaccine revenue declines and patent expiration risks; Burry likely forecasts a rebound or a market underappreciation of its pipeline and cash flows.

Burry’s full set of new positions reveals a common thread: he targets firms where perceived risk overshadows fundamental value or where market sentiment misjudges future prospects. Halliburton (HAL), a $61.50 billion buy, faces cyclical oil and gas industry volatility. Molina Healthcare (MOH), a $23.92 billion acquisition, navigates complex healthcare policy. SLM Corp (SLM), a $13.29 billion addition, operates in the student loan market, sensitive to interest rate shifts and regulatory changes. These companies, alongside Pfizer, often fall outside mainstream growth narratives or endure market skepticism for specific industry headwinds. Burry positions himself against prevailing anxieties, seizing what he believes are temporary dislocations rather than enduring weaknesses, betting on market inefficiency across varied, challenged sectors.

Michael Burry, the contrarian investor famous for betting against US subprime mortgages, sharply reduced his Lululemon Athletica Inc. (LULU) position in Q3 2025. Scion Asset Management cut its stake by 75%, a substantial move for a portfolio known for its deep conviction and extreme concentration. Burry hunts for severely mispriced assets the market ignores or despises.

Reducing a holding by three-quarters suggests a profound re-evaluation of Lululemon’s investment merits. Burry’s initial acquisition likely stemmed from a perception of significant undervaluation. This drastic trim implies Lululemon no longer fits his criterion as a severely mispriced asset. Either its market valuation corrected significantly, or new, compelling risks emerged, altering the fundamental value proposition for this deep-value contrarian.