Michael Burry made a dramatic "short to long" reversal in Q2, executing a 180-degree turnaround in his attitude toward Chinese concept stocks by clearing bearish options and making substantial purchases of call options.

As of the end of Q2, Michael Burry's Scion Asset Management held U.S. stock positions valued at $578 million, with the top ten holdings accounting for 92.37% of the portfolio, indicating concentrated positioning.

Michael Burry constructs his portfolio using a combination of options and stocks. As of the end of Q2, his portfolio's largest holding was call options on UnitedHealth, while the second-largest holding was call options on Regeneron Pharmaceuticals.

**"The Big Short" Bets on Chinese Concept Stocks**

In Q2 2025, Michael Burry executed a 180-degree reversal on Chinese concept stocks, switching from short to long. He cleared put options on Alibaba, Baidu, JD.com, PDD, and Trip.com, while purchasing call options on Alibaba and JD.com. He also initiated new positions in Lululemon stock and call options.

Michael Burry is the real-life inspiration behind the movie "The Big Short," having gained fame and substantial profits by accurately predicting the U.S. subprime mortgage crisis.

He began betting against the U.S. housing market in the mid-2000s, recognizing it was destined to collapse. During this period, Michael Burry analyzed mortgage-backed securities and discovered they contained numerous high-risk subprime loans. He realized that many of these securities would default once low interest rates ended, potentially leading to a housing market collapse. Based on this assessment, he purchased large quantities of credit default swaps (CDS) to bet against mortgage-backed bonds.

When the housing bubble burst in 2008, Michael Burry's trades earned him approximately $100 million personally and generated about $700 million for his investors. His story became central to Michael Lewis's bestselling book "The Big Short."

In the movie "The Big Short," contrarian investors ultimately achieved victory. Beyond the film, Michael Burry often maintains distinctive investment insights that differ from conventional wisdom.

According to SEC disclosures, in Q1 2024, while overseas investors held pessimistic views on Chinese concept stocks, Michael Burry's hedge fund significantly increased positions in these stocks.

By the end of Q1 2024, JD.com and Alibaba became his largest and second-largest holdings respectively. In Q1 2024, he increased his positions in JD.com and Alibaba by 80% and 66.67% respectively. These two internet companies had actually entered Michael Burry's portfolio since Q4 2022, but the substantial position increases occurred in Q1 2024. In Q2 2024, Michael Burry continued to significantly increase his Chinese concept stock positions, perfectly capturing the strong market rally brought by the "September 24" policy package.

By the end of 2024, Michael Burry reduced some Chinese concept stock positions while entering new ones. In Q1 2025, he cleared previously purchased Chinese concept stocks and simultaneously bought put options, adopting a cautious stance. However, by Q2 2025, he made another 180-degree reversal, clearing put options and purchasing call options on Alibaba and JD.com.

**U.S. Billionaire Who Said "Buy Everything China" Takes Profits** **Alibaba Remains Top Holding**

In Q2 2025, global institutions showed divergent views on Chinese concept stocks.

In Q4 2024 and Q1 2025, overseas Chinese concept stocks recorded significant rebounds, with internet stocks showing particularly notable gains. Entering Q2 2025, some institutions chose to take profits while others increased positions. For example, active management giant Dodge & Cox chose to increase JD.com positions in Q2 2025, while Pershing Square increased JD.com call options by 28.49% during the quarter.

U.S. billionaire David Tepper, who announced buying all Chinese stocks after "September 24" 2024, took profits in Q2 2025.

David Tepper had announced "buy everything China" after "September 24" 2024. In Q2 2025, he took profits on some Chinese concept stocks in his portfolio while significantly increasing UnitedHealth holdings. During the quarter, David Tepper notably reduced positions in multiple Chinese concept stocks including Alibaba, JD.com, and PDD. However, despite reduction of over 20%, Alibaba remained Appaloosa's largest holding. David Tepper's fund increased UnitedHealth holdings by 2.3 million shares, bringing the post-increase UnitedHealth position value to $764 million, making UnitedHealth the second-largest holding.