The Big Short 2.0? Michael Burry flips the script on China and tech

Welcome back to Smart Money, where we break down some of the biggest trades from well-known investors. This quarter, Michael Burry made an extremely bold move. He dumped China and bet against some of the market’s most hyped names. Howard Marks followed with a similar retreat and rotated into hard assets. Bill Ackman, meanwhile, took a major position in Uber. Let’s unpack the moves behind the headlines.

Michael Burry - Scion Asset Management

Michael Burry’s latest 13F filing stands out as one of the most dramatic hedge fund reversals in recent history. Known for his deep value approach to investing, Burry typically targets undervalued stocks with long-term potential. But in Q1 2025, he liquidated nearly his entire portfolio, including major Chinese holdings like Alibaba (BABA:US), Baidu (BIDU:US), JD.com (JD:US), and Pinduoduo (PDD:US). The only position he kept was Estée Lauder (EL:US). Once bullish on China, Burry has now pulled back completely.

Burry also bought put options on NVIDIA (NVDA:US), Alibaba, JD.com, and Pinduoduo. These are contracts that rise in value when the stock price falls. So this wasn’t just a portfolio exit. He's also made a direct bet against these names. Timing is a key consideration with these filings. Q1 covers the period after Trump’s tariff announcements, and 13Fs are filed up to 45 days after the quarter ends. Burry could have opened and closed these trades during Q1, meaning he may no longer hold the positions. What’s disclosed may not reflect his current holdings.

Howard Marks - Oaktree Capital Management

Legendary investor Howard Marks was highly active in the first quarter of 2025, executing a broad repositioning of his portfolio. His firm made 28 reductions in position size, including 12 full exits. This level of turnover signals a decisive strategic shift, likely in response to changing global macro conditions.

Echoing Burry’s decisive move, Marks pulled back from Chinese equities, fully exiting or significantly reducing positions in Trip.com (TCOM:US), JD.com (JD:US), and Pinduoduo (PDD:US). The move could suggest a high-conviction bearish stance on China or, at minimum, a rising sense of caution given growing geopolitical and economic uncertainties. This is notable given that, in a November 2024 video appearance (below), Marks spoke positively about China’s long-term potential, even while acknowledging near-term growth challenges. That commentary came before the reintroduction of tariff measures under former President Trump’s trade policy. The timing could suggest that new political risks may have pushed Marks to reassess his exposure.

On the other side of the ledger, Marks either initiated or increased positions in 14 stocks, notably adding significantly to mining and materials holdings. These included Barrick Gold (GOLD:US), Freeport-McMoRan (FCX:US), and Cemex (CX:US). This rotation could reflect a tactical shift toward hard assets and real-economy exposures, potentially driven by expectations of sustained demand for raw materials amid themes like global infrastructure investment and supply chain restructuring.

Bill Ackman - Pershing Square Capital Management

Bill Ackman made four new buys in Q1 2025, including a major new position in Uber (UBER:US). The ride-hailing company now accounts for 18.5% of his portfolio, making it Pershing Square’s top holding. Uber also drew interest from other high-profile investors last quarter, including David Tepper. Uber shares are up more than 30% over the past six months, driven by optimism around its potential in autonomous driving. The company has secured key partnerships with Waymo, Volkswagen, Aurora, May Mobility, WeRide, Pony.ai, Avride, and Momenta. These partnerships support its robotaxi ambitions. On May 7, 2025, CEO Dara Khosrowshahi described autonomous technology as “the single greatest opportunity ahead for Uber,” noting that Waymo’s launch in Austin had exceeded expectations.

Analyst sentiment is also strong. According to TipRanks data on CMC Invest, 27 out of 31 analysts rate Uber a “Buy,” with a 'high price target' of $115. Ackman also increased his stake in Brookfield Corporation (BN:US), a high-conviction holding that is his second-largest position. On the sell side, he exited Nike completely and trimmed his positions in Chipotle (CMG:US), Alphabet (GOOG:US), and Hilton (HLT:US). In Nike’s case, exposure to tariff risks may have made Uber a more attractive opportunity.

What the smart money bought last quarter

Tracking the moves of 79 top investors, DATAROMA highlights the stocks attracting the strongest conviction in Q1 2025. A select group of companies stood out as the most consistently bought across leading portfolios.

Ready to explore international markets?

CMC Invest is your home for international investment, with over 45,000 stocks and ETFs at your fingertips. Get $0 brokerage on all securities from the US, UK, Canada, and Japan (FX spreads apply).

Plus, you can now trade single units of popular stocks like Apple or Tesla. Choose from 50+ leading US stocks and ETFs.

To view or trade international stocks, log in to your CMC Invest account.

Don’t have an account? Sign up now to begin.

Disclaimer: This article provides general information only. It has been prepared without taking account of your objectives, financial situation or needs. It is not to be construed as a solicitation or an offer to buy or sell any financial instruments, or as a recommendation and/or investment advice. It does not intend to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any financial instruments. You should consider your objectives, financial situation and needs before acting on the information in this article. CMC Markets believes that the information in this article is correct, and any opinions and conclusions are reasonably held or made on information available at the time of its compilation, but no representation or warranty is made as to the accuracy, reliability or completeness of any statements made in this article. CMC Markets is under no obligation to, and does not, update or keep current the information contained in this article. Neither CMC Markets nor any of its affiliates or subsidiaries accepts liability for loss or damage arising out of the use of all or any part of this article. Any opinions or conclusions set forth in this article are subject to change without notice and may differ or be contrary to the opinions or conclusions expressed by any other members of CMC Markets.