**Burry's Q2 Contrarian Moves: Why He's Betting on Beaten-Down Stocks**

The Big Short's Michael Burry just made a bold pivot. After nearly liquidating Scion Asset Management's entire portfolio in Q1 to dodge April's market correction, he's gone full contrarian in Q2.

Two names caught his attention:

**UnitedHealth (UNH)** - Down 41% YTD despite being America's largest health insurer. The damage: management massively underestimated medical costs for 2025 (now $6.5B higher), crushing EPS guidance from $29.50-$30 to just $16. Add DOJ scrutiny on Medicare Advantage billing, and you've got a wreck. But Burry doesn't see a broken company—just a temporarily broken stock. He picked up 20k shares + 350k via call options. Berkshire's Buffett and Appaloosa's Tepper also loaded up. The bull case: 9% free-cash-flow yield, 3% dividend, and massive pricing power for the market leader.

**Lululemon (LULU)** - Crushed 47% this year. Competition, tariffs, cautious luxury consumers, and post-COVID slowdown are piling on. Q1 earnings beat expectations, but management cut full-year guidance citing "dynamic macro." Burry grabbed 50k shares + 400k via calls. His thesis: strongest balance sheet ($1.3B cash, zero debt), brand moat, and ~13.5x forward earnings might be overdiscounting near-term pain.

The pattern? Burry's timing is sharp. He dodged April's bloodbath and is now hunting where others fled. Whether this Q2 bet pays off like his housing short remains to be seen.