Investor Michael Burry increases investment in Estee Lauder.

Michael Burry’s Scion Asset Management Increases Stake in Estee Lauder

Michael Burry’s Scion Asset Management has expanded its investment in Estee Lauder, now holding twice the amount of shares compared to the end of last year. This move comes as the company, under the leadership of its new CEO, undergoes changes aimed at addressing poor demand in crucial markets like North America and China.

Presently, Burry owns 200,000 shares valued at approximately $13.2 million, as indicated in a recent regulatory report. It’s noteworthy that this is double the shares his fund held at the close of December.

“This increase in stakes might reflect Burry’s confidence in Estee Lauder’s potential to recover its status as a leading brand in the beauty industry, especially in a more competitive global landscape,” suggests Angeli Janchandani, a marketing expert from New York University.

Since taking on his role in January, CEO Stephane de La Faverie has accelerated the launch of new products and introduced a luxury pricing tier to stimulate demand following a period of sluggish growth.

Analyst Dan Su from Morningstar commented on the investment, saying, “While the size of this position isn’t particularly large, it is a positive indication for Estee Lauder regarding the efforts being made to rejuvenate the business.”

In a related development, a recent truce in the trade tensions between the U.S. and China has led to a reduction in tariffs from a staggering 145% down to 30%. This is expected to relieve some of the pressures for businesses highly reliant on the Chinese market.

It’s worth mentioning that the Asia-Pacific area, which includes China, represented around 31% of Estee Lauder’s overall sales in 2024.

Interestingly, Burry has significantly narrowed his investment portfolio, cutting the number of companies he invests in by about half, leaving him with just seven, as shown in the regulatory documents.

Despite recent difficulties, Estee Lauder’s stock has dipped approximately 15% this year, although shares saw a slight increase of about 2% on Friday.