The ‘Big Short’ Michael Burry’s Scion Asset Management is betting on a sell-off in major tech namesbuying bearish put options on Nvidia (NASDAQ:NVDA), Alibaba (NYSE:BABA), Baidu (NASDAQ:BIDU), JD.com (NASDAQ:JD), PDD Holdings (NASDAQ:PDD) and Trip.com (NASDAQ:TCOM)after cutting its portfolio from 13 to seven stocks in Q1, according to a recent 13F filing.

Scion’s filing shows the fund bought puts that profit if these names slide, even as it doubled its stake in Estee Lauder (NYSE:EL) to 200,000 shares, a notable move given EL is down over 50% in the past year. At quarter end, Scion oversaw roughly $155 million, a fraction of rival funds, underscoring the concentrated, high-conviction nature of Burry’s latest pivot.

Burry’s reputation from his 2008 housing-market bet lends weight to his view that the AI frenzy around NVDA and the post-COVID rally in Chinese tech may have run ahead of fundamentals.

While exact strike prices and maturities weren’t disclosed, the puts signal he sees limited upside or even downside riskparticularly as Chinese regulators and U.S.China tensions cloud growth forecasts for BABA, BIDU, JD, PDD and TCOM.

On the other hand, his EL position suggests a classic turnaround play: the beauty-products giant’s near-term struggles could set the stage for outsized gains if consumer spending rebounds.

Why It Matters: Burry’s dual strategyshorting high-flying tech via puts while loading up on beaten-down EL equityhighlights a shift from growth to value and may presage broader market cracks.

This article first appeared on GuruFocus.