Michael Burry and the Market Collapse
In short selling, a position is opened by borrowing shares of a stock or other asset that the investor believes will decrease in value. The investor then sells these borrowed shares to buyers willing to pay the market price.
Predicting the Market Collapse
Michael Burry sounded the alarm on the US housing bubble in an email in 2005. ""The Big Short"" investor highlighted risky loans and complacent credit-rating agencies. Burry predicted the housing market would crash and made a fortune betting on that outcome.
Michael Burry’s Recent Activity
Hedge fund manager Michael Burry of “The Big Short” fame has been a busy man lately. In addition to his non-stop shadowing (and shading) of Tesla CEO Elon Musk on Twitter, Burry has also been selling off shares. In Q3 of 2021, he reduced his common stock holdings from $137 million to $42 million.
Scion Capital and Michael Burry’s Shift
As the ending of the movie showed, even after making outsized gains during the financial crisis, Mr. Burry soon closed his hedge fund, Scion Capital LLC, due to the continuous redemption pressure he faced from his investors while betting against the housing market. Dr. Burry subsequently closed the Scion Capital fund and has since launched his latest fund, Scion Asset Management.
Michael Burry’s Stock Holdings
- Top Stock Picks of Michael Burry
- CVS Health Corporation (NYSE:CVS) Number of Hedge Fund Holders: 61.
- CVS Health Corporation (NYSE:CVS) provides healthcare services.
- Lockheed Martin Corporation (NYSE:LMT) Number of Hedge Fund Holders: 51.
- The GEO Group, Inc. (NYSE:GEO)
Howard Hughes and Wealth
Howard Hughes was a millionaire by the age of 18 after inheriting a fortune from his father, who had developed a drill bit that revolutionized the oil industry. Before he became known as an aviator, Hughes grew his wealth as a Hollywood film producer.