Michael Burry, founder of Scion Asset Management, has revealed his latest portfolio, showing a significant shift towards heavily weighting out-of-favor stocks rather than chasing AI giants. His largest holdings include call options on UnitedHealth (UNH), accounting for 18.88% of the portfolio, followed by Regeneron Pharmaceuticals (REGN) call options (18.16%) and Lululemon (LULU) call options (16.43%).

Burry believes that companies such as UnitedHealth, Lululemon, Estée Lauder, and JD.com are significantly undervalued, and he is betting on a strong rebound for these stocks. He described Lululemon as "shockingly cheap," and despite its stock price falling 52% year-to-date, he is bullish on the company's strong balance sheet and near-zero debt. Regeneron Pharmaceuticals reported non-GAAP earnings per share of $14.29 in the second quarter, significantly exceeding the consensus estimate of $8.00.