About Michael Burry

All you need to know about him and his holding company Scion Asset Management.

Portfolio Options Performance About

6 stocks

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$43.7 Million

Portfolio value

+315.0%

5-Year Performance

Who is Michael Burry?

Michael Burry is a legendary investor & hedge fund manager. He founded the hedge fund Scion Capital, which he ran from 2000 until 2008.

Following the Financial Crisis of 2008, he closed the firm to focus on his own personal investments.

What is Michael Burry's Net Worth?

Michael Burry is one of the most famous & successful money managers in history & has a personal Net worth of over $300 Million. However, despite many misconceptions he is currently not a Billionaire officially yet.

Michael Burry latest Investments

  • Lockheed Martin Corp. (New holding)
  • Geo Group, Inc. (Sold 53.6% shares)
  • CoreCivic Inc (Sold 68.3% shares)
  • NOW Inc (New holding)
  • Scynexis Inc (New holding)
  • Alphabet Inc (Sold -91.9 Thousand shares)
  • Cardinal Health, Inc. (Sold -858 Thousand shares)
  • Facebook Inc (Sold -941 Thousand shares)
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What is Michael Burry doing now?

Next Big Short? Burry has a Major short position against Tesla stock.

He has long put's against 800,100 shares of Tesla worth approximately $534 million, according to a filing with the U.S. Securities and Exchange Commission.

Burry also has a Major Short position against Ark Invest. He has taken out a $31m position against Cathie woods Disruptive Innovation ETF.

According to a 13F regulatory filing (2021, Q2), the ‘Big Short’ investor’s Scion Asset Management has invested into put contracts against 235,000 shares of the Ark Innovation ETF (ARKK).

How much did Michael Burry make in the big short?

He always had an interest in business and investing. When he was seven years old, he borrowed a book from the public library “One Thousand Ways to Make $1000”. This inspired him to think about starting his own businesses. His early childhood years were full of entrepreneurial ventures. He had a lot of small income sources like delivering newspapers. He even took a $35 deduction for the use of his bicycle and watch on his route in his first tax return in 1944.

Despite liking his small ventures his father convinced him to study. He studied under Benjamin Graham. “The Intelligent Investor”, the book that Graham wrote in 1949, was a big influence on him and his career. Warren worked under Graham for 2 years as an analyst.

His career took off in 1956, when he established Buffett Partnership, Ltd. In 1962, he became a millionaire because of his partnerships. He soon acquired a textile manufacturing company called Berkshire Hathaway. The business was changed to create a diversified holding company. In 1978, Charlie Munger joined as vice-chairman.

After many successful investments Berkshire went public in 1990 and thus made Buffett a billionaire and now one of the richest person in the world. He pledged to give away 99 percent of his fortune to philanthropic causes.

Michael Burry - The Big Short Summary

Michael Burry is widely known for predicting the 2008 Financial Crisis & Housing bubble, popularised in the Oscar Winning Movie "The Big Short" (2015).

In which he had credit default swap short positions against "Mortgage Backed Securities".


What are Mortgage Backed Securities?

Mortgage Backed Securities (MBS) are a collection of Home loan mortgages compiled together to create an investment security.

The idea between these securities is risk was "supposed" to be diversified.

However, many of the loans inside these mortgage Backed securities (MBS) were given to many home owners with bad credit and even no job! These were called "NINJA loans": "No Income No Job".

However, they were still rated AAA (Investment grade) by many credit Agencies!

Michael burry saw that ultimately fundamentals would bring the truth about the real value of these securities and many would plummet to zero!

He was right, This was the 2008 Financial Crisis, Housing Bubble which resulted in the collapse of Lehman brothers investment bank & a major stock market crash!


Best Scenes from The Big Short?

The Big Short Movie is known for explaining complex financial terms in unconventional methods.

Popular Movie scenes include, the hilarious "Jenga CDO scene" & Celebrity Chef Anthony Bourdain Fish Soup scene.

These movie scenes were used to explain a Collateralized Debt Obligation (CDO), a synthetic investment product which represents different loans bundled together and sold by the lender.

The idea behind a CDO is that the number of loans bundled together diversifies the risk for investors.

However, this can be taken to extreme levels with various bad loans or "bad Ingredients" bundled together in an Investment grade (highest Rated) instrument.

The wide spread trading of these securities with major unknown default risk was one of the main causes of the sub prime mortgage crisis of 2007.


Are All Mortgage Backed Securities Collateralized Debt Obligations?

Mortgage-backed securities (MBS) and collateralized debt obligations (CDOs) two very similar but technically different financial instruments.

The key difference between the two lies in what these assets are. MBS, as their name implies, are made up of mortgages home loans bought from the banks that issued them.

However, CDOs are much broader: They may contain corporate loans, auto loans, leases, credit card debt and of course mortgages.


Who played Michael Burry in The Big Short?

In the blockbuster Financial Movie, "The Big Short" (2015), Christian Bale played Michael Burry as the Eccentric Hedge Fund Manager which made a "Big Short" bet against the US Housing Market.

The Big Short Cast also includes, major hollywood talent such as: Steve Carell, Ryan Gosling, and Brad Pitt.