The RealReal Plunges 10.71% as Burry Exits Position

The RealReal's stock price dropped by 10.71% in pre-market trading on April 3, 2025, reflecting a significant decline in investor sentiment towards the luxury resale platform.

Michael Burry, the renowned investor known for his contrarian bets, made several strategic moves in his Q4 2024 portfolio. Notably, he exited his position in The RealReal, a struggling luxury resale platform, and Olaplex, a haircare products company. Both stocks had been Wall Street darlings that crashed in 2022-2023, facing heavy losses and declining sales. Burry's decision to sell these positions suggests a shift towards more stable and proven companies, indicating a cautious outlook on the consumer sector.

Burry's portfolio also saw a significant rotation into healthcare and insurance stocks, which are typically defensive areas that can hold up in a shaky economy. He increased his holdings in Molina Healthcare, a managed healthcare insurer specializing in Medicaid and Medicare plans, and added new positions in HCA Healthcare and Oscar Health. These moves reflect Burry's strategy of preparing for a potentially rough economy by owning businesses that can weather economic storms.

In the consumer sector, Burry made contrarian bets on beaten-down retail and consumer brand companies, including Estée Lauder, V.F. Corporation, and Canada Goose. These companies had faced challenges in 2023, but Burry saw value opportunities if their fortunes improved. His investment thesis banks on an eventual consumer spending recovery, even if the stocks haven't turned the corner yet.

Overall, Burry's portfolio reflects a carefully calibrated outlook, balancing regions and industries to hedge against various risks. His moves into healthcare, insurance, and consumer brands, along with his exit from struggling retail plays, show a strategic adaptation to the macro landscape, positioning him for multiple market scenarios.