Michael Burry, the renowned investor who inspired "The Big Short," made new portfolio moves in luxury beauty giant Estée Lauder Companies, Inc. (NYSE:EL) in the second quarter.
- EL stock is up 21% year-to-date. Check out the chart here.
Burry's Beauty Bet
According to Scion Asset Management's latest filing, Burry's firm sold a portion of his shares in Estée Lauder while simultaneously acquiring bullish call options on the same company.
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Earlier in 2025, Estée Lauder was Burry's single largest stock holding with a position of 200,000 shares. In the second quarter, he sold 50,000 EL shares, cutting his exposure by 25%.
Estée Lauder remains the firm's largest holding with 150,000 remaining shares worth $12.12 million despite the sale.
Burry also made another bold new move: he purchased 500,000 call option contracts on Estée Lauder, valued at approximately $40.4 million.
Call options give Burry the right to buy Estée Lauder shares at a predetermined price within a specified time frame, enabling him to profit if the stock’s price increases.
EL Q4 Earnings
The beauty company is set to report its fourth-quarter financial results before the opening bell on Wednesday.
Analysts expect Estée Lauder to post earnings of nine cents per share on revenue of $3.4 billion, according to estimates from Benzinga Pro. The company more than doubled the Street's EPS estimate in the previous quarter.
If Estée Lauder posts strong earnings, Burry's position stands to benefit from both his retained shares and his sizable call options, amplifying potential gains as the stock rallies.
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This image was generated using artificial intelligence via Midjourney.
