Michael Burry Saw It Before Anyone Else — Then Estée Lauder's Story Took A Dramatic Turn

Core Insights - Estée Lauder's stock has seen a steady increase over the past three months, with a notable jump of over 10% following the death of Leonard Lauder, a key executive and son of the founder [1][3] - Michael Burry's hedge fund, Scion Asset Management, has doubled its stake in Estée Lauder, making it the only long position held by the firm [1][3] Company Developments - Leonard Lauder, who played a significant role in transforming Estée Lauder into a global leader in the beauty industry, passed away at the age of 92 [2] - In the first quarter of 2025, Scion Asset Management purchased an additional 100,000 shares, increasing its total holdings to 200,000 shares [2] Market Trends - The increase in Estée Lauder's stock price may reflect a strategic bet on the "Lipstick Index," which suggests that consumers tend to purchase affordable luxuries like cosmetics during economic downturns [3] - Historical data indicates that during the 2008 recession, cosmetics sales increased, highlighting consumer behavior towards small comfort purchases in tough economic times [4]