Billionaire financier Michael Burry, who recently deregistered his hedge fund Scion Asset Management from US registration, has unveiled four new investment ideas. Freed from the constraints of regulation, he now shares his views in a blog on the Substack platform. Burry, famous for capitalizing on the 2008 mortgage crisis and regular warnings of market bubbles, has traditionally gone after undervalued companies - especially small and heavily undervalued ones.

Three stocks on his list have just lost at least 30% of their value since the beginning of the year, and their combined market capitalization has fallen below $25 billion. Shares of the fourth company, a state-backed company, on the contrary, soared amid rumors of its possible privatization.

Which stock Burry recommended.

- Sportswear retailer Lululemon. The company's securities have collapsed more than 52% since the beginning of the year and trades at a price-to-earnings forecast ratio of less than 15.

- Molina, a provider of health insurance and healthcare for low-income and elderly Americans. Its capitalization is down 49% this year, and its multiple is also under 15.

- Shift4 Pay ments is a fintech company that provides payment processing services and various commercial tools for hotels, restaurants, stadiums and online retailers. Shift4 Payments quotes have gone down 32% since the beginning of 2025.

- The fourth investment Burry listed is shares of mortgage agency Fannie Mae, a government-backed entity that powers the U.S. housing market by insuring more than $4 trillion in mortgages and lowering borrowing costs for buyers. Fannie Mae is the only one of the four companies on Burry's list whose stock is traded on the over-the-counter market. It also stands out because, conversely, its securities have nearly tripled since the beginning of the year, Business Insider notes. This came amid expectations that the Trump administration may privatize Fannie Mae and its "sister" Freddie Mac, ending the external management imposed after the 2008 crisis and paving the way for them to be fully listed on the stock exchange, the publication adds.

The first three companies have already appeared in Scion Asset Management's reports over the past year. But Burry disclosed his position in Fannie Mae for the first time: Because its shares are traded on the over-the-counter market, his fund was not required to disclose them in its regular Form 13F reports.

"You know what I have [in my portfolio] and I like Lululemon, Molina, Shift4 Payments," Burry wrote in the post. - Also Fannie Mae, but as a "pink sheet" paper, it was never disclosed. All of these positions I hold for at least three to five years. I'll write a breakdown on each of them, as well as other stocks, in future posts. The $2 billion to $12 billion capitalization range is the most fertile field today, as I see it."

Burry also added that this is "a great time of year to find good companies whose stocks are selling off too much due to 'show-offs' and tax loss capture." He explained that "a lot of managers don't want to show at the end of the year that they held big losers," but he is not embarrassed by that.

This article was AI-translated and verified by a human editor

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