Closely followed investor Michael Burry has opened a new position in U.S. cosmetics firm Estée Lauder (EL).
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The latest 13-F disclosure filed with the U.S. Securities and Exchange Commission (SEC) shows that Burry purchased 100,000 shares of EL stock in the fourth quarter of 2024 at an average price of $81.50 per share. Based on the average price, Burry spent approximately $8.15 million accumulating his stake in Estée Lauder.
The position in Estée Lauder is now the fourth largest in Burry’s hedge fund, Scion Asset Management, which had assets under management (AUM) of $196.20 million at the end of last year. Burry is known for running a concentrated portfolio and only owned 13 stocks as of Dec. 31, 2024.
New Buys
In addition to Estée Lauder, a New York-based retailer of makeup and perfume, Burry also opened new positions during Q4 2024 in luxury parka maker Canada Goose (GOOS) and VF Corp. (VFC), the apparel and shoe company behind brands such as “The North Face” and “Timberland.”
Burry is known for shorting the U.S. sub-prime mortgage market ahead of the 2008-09 financial crisis, an event that was chronicled in the book and film “The Big Short.” Since making a fortune when the U.S. real estate market imploded in 2008, Burry has styled himself as a value investor and someone who favors contrarian stock picks.
Other moves Burry made in last year’s final quarter included selling his entire positions in the stocks of Shift4 Payments (FOUR) and The RealReal (REAL), and trimming his stakes in Chinese technology companies Alibaba (BABA) and JD.com (JD).
EL stock has declined 52% in the past 12 months.
Is EL Stock a Buy?
Estée Lauder’s stock has a consensus Hold rating among 22 Wall Street analysts. That rating is based on five Buy, 16 Hold, and one Sell recommendations issued in the last 12 months. The average EL price target of $77.25 implies 12.46% upside from current levels.
