Michael Burry, the investor in the movie “Big Short,” became famous for accurately predicting the collapse of the housing market in 2008.
Now he’s betting more than $1.6 billion on a Wall Street crash. v
According to Security Exchange Commission filings, Burry’s fund, Scion Asset Management, bought $866 million in put options. He is making this bet against the S&P 500 and Nasdaq 100. (Poll: Is America Better Off Under Biden? VOTE)
Michael Burry, who predicted the 2008 crash, bet $1.6 billion on Wall Street downturn. Scion Asset Management mainly invested in S&P 500 and Nasdaq 100 puts, despite Burry’s mixed stance. Despite this, S&P 500 and Nasdaq 100 grew 16% and 38% this year.
What are your thoughts? pic.twitter.com/EmRdrGN1PX
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However, Burry has admitted that he’s been wrong about some of his investments recently. In January, he suggested to his 1.4 million followers to sell their stocks. Three months later, by the end of March, he said, “I was wrong to say sell.”
Born in San Jose, California in 1971, Burry attended the University of California, Los Angeles, where he studied economics and finance. After graduating, he worked as a neurologist for several years before becoming a hedge fund manager.
In 2000, Burry founded Scion Capital, a hedge fund that focused on investing in distressed securities. In 2005, he began to short the subprime mortgage market, betting that the value of these securities would decline. His prediction proved to be correct, and Scion Capital made a significant profit when the housing market collapsed in 2007.
Burry’s story was made famous in the 2015 film “The Big Short,” which was based on the book of the same name by Michael Lewis. In the film, Burry is portrayed by Christian Bale.
NEW: Michael Burry bought 💵 $1.6bn worth of puts, of wich $740mn against NASDAQ 100 ($QQQ) and $900mn against S&P 500 ($SPY) 👀
Are investors betting on a stock market crash? pic.twitter.com/DY7cKwZkWK
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In recent years, Burry has been critical of the stock market, warning that it is overvalued and due for a correction. He is considered one of the most successful investors of his generation. His ability to predict the subprime mortgage crisis and profit from it made him a legend in the investing world.
Only time will tell if his latest prediction about the stock market is correct, but one thing is for sure: Michael Burry is an investor to watch.
