Michael Burry is an American investor and hedge fund manager who rose to fame for correctly predicting and profiting from the subprime mortgage crisis of 2007-2008. Born in San Jose, California, in 1971, Burry developed an early interest in investing and began trading stocks in his teenage years. After graduating from Vanderbilt University School of Medicine, he worked as a neurologist before deciding to pursue a career in finance.
In 2000, Burry founded Scion Capital, a hedge fund that employed a value investing strategy, seeking out undervalued stocks. As the housing market began to overheat in the mid-2000s, Burry noticed a growing trend of risky lending practices in the subprime mortgage market. He recognized that these mortgages were unlikely to be repaid, and he began betting against them through complex financial instruments called credit default swaps.
Burry’s bold move made him a controversial figure on Wall Street. Many dismissed his predictions as outlandish, believing that the housing market would continue to rise indefinitely. However, Burry’s skepticism proved to be well-founded. As the housing market collapsed in 2007, the subprime mortgages that Burry had bet against went into default, causing massive losses for the financial institutions that had invested in them. Scion Capital, on the other hand, made a profit of over $1 billion from its short positions.
Burry’s story was captured in the 2010 book “The Big Short” by Michael Lewis and the 2015 film adaptation of the same name. In both the book and the film, Burry was portrayed by Christian Bale.
Burry’s prescient prediction of the financial crisis made him a respected figure in the investment world. However, he also faced criticism for his role in the crisis, with some accusing him of profiting from the misfortune of others. Burry has defended his actions, arguing that he was simply exposing a bubble that was bound to burst.
In the years since the financial crisis, Burry has continued to manage investments, albeit on a smaller scale. He is known for his contrarian views and his willingness to challenge the prevailing wisdom in the financial markets.
Michael Burry is a complex and controversial figure, but there is no doubt that he is a brilliant investor who played a significant role in the financial crisis of 2007-2008. His story serves as a reminder of the importance of critical thinking and the dangers of unchecked risk-taking in the financial world.
How much did Dr Michael Burry make?
Dr. Michael Burry made a personal profit of approximately $100 million and a profit for his remaining investors of more than $700 million by betting against the subprime mortgage market. His hedge fund, Scion Capital, ultimately recorded returns of 489.34% (net of fees and expenses) between its November 1, 2000, inception and June 2008.
Burry’s success in predicting and profiting from the subprime mortgage crisis is a testament to his meticulous research and contrarian approach to investing. He is considered to be one of the few investors who correctly predicted the crisis, and his story has been captured in the book “The Big Short” and the film adaptation of the same name.
Who made most money in big short?
Michael Burry, an investor and hedge fund manager, is widely considered to have made the most money in the events depicted in the book and film “The Big Short.” Through his hedge fund, Scion Capital, Burry profited from the collapse of the subprime mortgage market in 2007-2008 by betting against mortgage-backed securities.
Burry’s strategy involved purchasing credit default swaps (CDS), which are financial instruments that essentially act as insurance against the default of debt obligations. As the subprime mortgage market began to falter, the value of these CDS increased dramatically, generating significant profits for Burry and his investors.
Estimates vary, but Burry is believed to have personally made a profit of approximately $100 million from his CDS holdings. Additionally, his hedge fund, Scion Capital, achieved returns of over 400% during the period of the crisis, generating substantial profits for its investors.
While Burry’s success is notable, it’s important to note that many other investors and financial institutions also profited from the subprime mortgage crisis. However, Burry’s prescient prediction and his willingness to bet against the prevailing market consensus made him a particularly prominent figure in the events leading up to the crisis.