News
Kate Plummer
Aug 16, 2023
content.jwplatform.com
The “Big Short” investor Michael Burry who became famous for correctly predicting the collapse of the housing market in 2008, has bet more than $1.6 billion on a Wall Street crash.
Bury made the correct prediction in the 2000s, and it was such a good call the event was chronicled by Michael Lewis in his bestseller “The Big Short: Inside the Doomsday Machine” and later adapted into a film starring Christian Bale.
Now, some 15 years later, Burry has made another big bet - this time against the S&P 500 and Nasdaq 100, according to Security Exchange Commission filings released on Monday, and is using more than 90 per cent of his portfolio to bet on a market downturn, according to the filings.
It is not clear why he is taking such negative positions given the S&P 500 is up roughly 17 per cent for the year to date, while the Nasdaq 100 is up almost 39 per cent over the same period.
Nevertheless, Berry has a strong investment record.
Traders following the investments disclosed by Scion’s over the last 3 years (between May of 2020 and May 2023) would have made annualised returns of 56 per cent according to an analysis by Sure Dividend.
Over the same period, the S&P 500 had annualised returns of about 12 per cent.
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