As we navigate the volatility of January 2026, the divergence between Wall Street's optimism and Michael Burry’s portfolio construction has never been wider. While retail investors are still chasing AI rallies and crypto surges, the man who predicted the 2008 housing collapse is quietly positioning for a different reality: stagflation and value compression.

The 13F filings released late last year painted a picture of a fund manager who is deeply skeptical of the "soft landing" narrative. Analyzing the michael burry latest positions november 2025 reveals a strategic pivot away from high-multiple US tech and into deeply discounted international assets and hard commodities. It is a classic contrarian playbook: buy what is hated, and short what is hyped.

1. The "China Contra" Thesis

The most glaring aspect of Scion Asset Management’s strategy is the continued, high-conviction bet on Chinese technology. Despite geopolitical tensions and a sluggish Chinese economy, Burry has maintained significant exposure to names like Alibaba (BABA) and JD.com (JD).

This isn't a blind gamble; it is a mathematical arbitrage. These companies trade at single-digit P/E ratios with massive cash piles, while their US counterparts trade at 30x earnings. Burry is essentially betting on mean reversion. In a market where the S&P 500 is priced for perfection, Burry is buying assets that are priced for disaster, arguing that the "disaster" is already priced in.

⚠️ The "Put" Protection Layer

Burry rarely goes long without insurance. A critical component of his strategy involves:

• Semiconductor Puts: Betting on a cyclical downturn in chip demand.
• Index Hedges: Using options to profit from sudden volatility spikes (VIX).
• Cash Hoarding: Keeping powder dry for a liquidity event.

2. Physical Assets Over Digital Hype

While BlackRock and the ETF complex are gobbling up Bitcoin, Burry has shown a preference for tangible value. His allocation often includes physical gold trusts or shipping stocks—assets that perform well when inflation lingers and supply chains fracture.

This focus on "real things" suggests he believes the inflation fight is not over. If the Federal Reserve is forced to keep rates higher for longer to combat sticky service inflation, the tech growth story collapses, and value stocks with tangible assets reign supreme.

3. The Verdict: Patience vs. FOMO

For the average investor witnessing the January volatility, Burry’s positioning is a sobering reminder. He is willing to look wrong for months (or even years) to be right when it matters most. His portfolio is not designed to beat the market every day; it is designed to survive the days when the market breaks.