Michael Burry Portfolio

Scion Asset Management LLC

Michael Burry Photo

Michael Burry Portfolio

Holdings
17
Total Value
$109M
Top Buys
Top Sells

About Michael Burry

Michael James Burry is a prominent American investor and hedge fund manager who made a name for himself by being one of the first to predict and profit from the subprime mortgage crisis of 2007-2010. Born on June 19, 1971, in San Jose, California, Burry attended the University of California, Los Angeles (UCLA), where he earned his M.D. degree. However, he ultimately chose not to become a physician and instead pursued a career in finance.

In 2000, Burry founded Scion Capital, a hedge fund that he ran for eight years before closing it down in 2008. During his tenure, he managed to achieve staggering returns for his investors, with an annualized return of 20% and a total return of 489.34%. His investments in individual stocks, such as GameStop and Tesla, have received widespread attention in recent years, with many investors following his moves closely.

In addition to his success in the financial world, Burry is also known for his philanthropic endeavors. He has donated millions of dollars to various causes, including autism research and education.

Burry is a unique investor who relies heavily on his independent research and analysis to make sound investment decisions. His methodical approach, combined with his willingness to go against popular opinion, has led to his notable track record of success.

FAQs

Who is Michael Burry?

Michael Burry is a well-known American investor and hedge fund manager, famous for his early prediction of the 2000s housing market crash and his profitable bets against subprime mortgages, which were depicted in Michael Lewis's book "The Big Short" and its subsequent film adaptation. He founded Scion Capital, a hedge fund. Burry is recognized for his value investing style and deep focus on financial analysis.

Where was Michael Burry educated?

Burry earned his M.D. degree from the University of California, Los Angeles (UCLA).

What is the name of the hedge fund Michael Burry founded?

Michael Burry founded Scion Capital in 2000.

What causes does Michael Burry support?

Burry is known for his philanthropy and has donated millions to various causes, including autism research and education.

How did Michael Burry short the housing market?

Michael Burry shorted the housing market by using credit default swaps (CDS). These financial instruments allowed him to bet against subprime mortgages. He recognized early on that the housing market was heavily inflated and poised for a collapse, primarily due to risky subprime lending practices. Burry's firm, Scion Capital, purchased CDS from major investment banks, effectively betting that certain mortgage-backed securities would decline in value. When the housing market crashed in 2007 and 2008, these securities plummeted, and Burry's positions in the credit default swaps became highly profitable, as the banks had to pay out large sums to him.

What are mortgage-backed securities?

Mortgage-backed securities (MBS) are investment products similar to bonds that consist of bundles of home loans and other real estate debt. They turn banks into intermediaries between homebuyers and investors. MBS can be bought and sold through brokers, but their soundness relies on the quality of the underlying mortgages. Understanding the risks involved is crucial before investing in MBS, as demonstrated by the 2008 financial crisis. MBS must be issued by regulated institutions and meet certain rating standards.