Journey of Michael Burry - The Investor Who Predicted the Subprime Mortgage Crisis
Journey of Michael Burry
Michael Burry: The Visionary Investor Behind 'The Big
Short'
Michael James Burry, born on June 19, 1971, in San Jose,
California, is an American investor and hedge fund manager renowned for his
prescient prediction of the 2008 subprime mortgage crisis. He founded Scion
Capital in 2000, operating it until 2008 before transitioning to Scion Asset
Management in 2013. As of 2025, Burry's net worth is estimated at approximately
$300 million.
Early Life and Education
Burry lost his left eye to retinoblastoma at the age of two,
a challenge he overcame early in life. He attended Santa Teresa High School and
later pursued economics and pre-med at UCLA, earning a medical degree from
Vanderbilt University School of Medicine. Although he began a pathology
residency at Stanford, Burry shifted his focus to finance, maintaining his
medical license in California.
Investment Philosophy and Scion Capital
Inspired by value investing principles from Benjamin Graham
and David Dodd, Burry founded Scion Capital in 2000. His analytical approach
led to significant returns, notably by shorting overvalued tech stocks during
the internet bubble. Burry's strategy emphasized a margin of safety and deep
fundamental analysis.
The Subprime Mortgage Crisis
In 2005, Burry identified vulnerabilities in the subprime
mortgage market, particularly in adjustable-rate mortgages. He took a
contrarian position by purchasing credit default swaps (CDS) against
mortgage-backed securities, anticipating a market collapse. His foresight
proved accurate, earning substantial profits and solidifying his reputation as
a visionary investor.
Journey of Michael Burry - The Investor Who Predicted the Subprime Mortgage Crisis#investor and hedge fund manager#Scion Capital#age#net worth#investo
Post-Crisis Ventures and Scion Asset Management
After closing Scion Capital in 2008, Burry founded Scion
Asset Management in 2013. The firm focuses on long-term investments in
undervalued assets, including water rights, farmland, and gold. Burry has also
expressed concerns about passive investing trends and their potential market
implications.
Recent Investment Activities
As of Q2 2025, Scion Asset Management's portfolio is valued
at approximately $56 million, with holdings in Estee Lauder, JD.com, Alibaba,
HCA Healthcare, Citigroup, and the Sprott Physical Gold Trust. In 2024, Burry
increased his stake in Estee Lauder, signaling confidence in the company's
recovery prospects.
Short Positions and Market Outlook
Burry has a history of shorting high-profile stocks and
ETFs, including Tesla and the ARK Innovation ETF. In Q1 2025, he initiated put
options on companies like Nvidia, JD.com, Baidu, Pinduoduo, and Trip.com,
reflecting his cautious stance on the technology and Chinese markets.
Personal Life and Interests
Burry resides in Saratoga, California, with his family. His
son was diagnosed with Asperger syndrome, leading Burry to reflect on his own
traits and consider that he may share the condition. Outside of investing,
Burry is an avid fan of heavy metal music, enjoying bands like Lamb of God,
Pantera, and Amon Amarth.
Legacy and Influence
Burry's investment strategies and insights continue to influence the financial community. His ability to identify market inefficiencies and take contrarian positions has earned him a reputation as a thoughtful and independent investor. While his philanthropic activities are less publicized, Burry's contributions to financial education and market analysis are widely recognized.
