Michael Burry, of ‘Big Short’ fame, just bet $1.6 billion on a stock market crash | CNN Business (2025)

New York CNN

Michael Burry, the “Big Short” investor who became famous for correctly predicting the epic collapse of the housing market in 2008, has bet more than $1.6 billion on a Wall Street crash.

Burry is making his bearish bets against the S&P 500 and Nasdaq 100, according to Security Exchange Commission filings released Monday. Burry’s fund, Scion Asset Management, bought $866 million in put options (that’s the right to sell an asset at a particular price) against a fund that tracks the S&P 500 and $739 million in put options against a fund that tracks the Nasdaq 100.

Burry is using more than 90% of his portfolio to bet on a market downturn, according to the filings.

But Burry appears to have been wavering between bullish and bearish on his stock picks this year. In January, he tweeted a cryptic message to his 1.4 million followers. “Sell,” he wrote. But by the end of March, he backtracked. “I was wrong to say sell.” he wrote.

The S&P 500 and Nasdaq 100 have both notched big gains so far this year. They’re up nearly 16% and 38%, respectively.

In the mid-2000s, Burry was famous for placing a wager against the housing market and profited handsomely from the subprime lending crisis and the collapse of numerous major financial entities in 2008. The event was chronicled by Michael Lewis in his bestseller “The Big Short: Inside the Doomsday Machine” and later adapted into a film where Burry was played by Christian Bale.

Getting out of regional banks and China

Burry’s fund is also getting out of its shares in a number of regional banks – it sold its 150,000 shares of First Republic Bank (FRC) as well as holdings in Huntington Bank PacWest (PACW) and Western Alliance (WAL). It’s unclear whether these sales took place before or after JPMorgan Chase took over First Republic Bank (FRC) in May.

Burry also reversed course on Chinese stocks – selling his shares of JD.com (JD) and Alibaba (BABA) in the second quarter of the year.

A little long

There are some names that Burry and his team at Scion are betting on.

About 6% of the company’s stock portfolio is long and in the second quarter of the year he increased his exposure to the travel and healthcare industry – purchasing shares of Expedia Group (EXPE), MGM Resorts (MGM), CVS (CVS) and Cigna (CI).

Burry also purchased $4.7 million shares worth of CNN parent company Warner Bros. Discovery (WBD) and $3.3 million in online second hand retailer, The RealReal (TRR).

But in financial circles, Michael Burry’s bearish predictions often garner more attention than his optimistic bets.

While one big payoff doesn’t guarantee future returns, Burry does have 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 annualized returns of 56% according to an analysis by Sure Dividend. Over the same period, the S&P 500 had annualized returns of about 12%.

Michael Burry, of ‘Big Short’ fame, just bet $1.6 billion on a stock market crash | CNN Business (2025)

FAQs

What did Michael Burry discover in The Big Short? ›

The film "The Big Short" chronicled Burry's successful 2008 stock market crash prediction. As the founder of Scion Capital, he foresaw the impending collapse of the housing bubble in the late 2000s, a calamity that significantly impacted the economy.

How much money did Michael Burry make in The Big Short? ›

When all was said and done, Burry's bet through Scion Capital made his fund's investors around $725 million, and he pocketed a tidy $100 million.

Did Michael Burry bet against the stock market? ›

Michael Burry, of 'Big Short' fame, just bet $1.6 billion on a stock market crash | CNN Business.

Did Michael Burry make money in the crash? ›

Michael Burry made $100 million by predicting the housing market crash in The Big Short. Mark Baum, based on Steve Eisman, earned $1 billion from the market crash depicted in the film. Jared Vennett, based on Greg Lippmann, made $47 million from swap sales as shown in the movie.

What is The Big Short summary? ›

What is the true story behind The Big Short? ›

Summary. The Big Short describes several of the main players in the creation of the credit default swap market who sought to bet against the collateralized debt obligation (CDO) bubble and thus ended up profiting from the financial crisis of 2007–08.

Did Michael Burry really close his fund? ›

Burry shut down his hedge fund, Scion Capital, in 2008. In 2013 his private investment firm, Scion Asset Management, was incorporated.

Is Michael Burry still shorting the S&P 500? ›

Michael Burry, who famously shorted subprime mortgages during the 2008 financial crisis, closed his bets against the S&P 500 and the Nasdaq 100 in the third quarter. But he also found another industry to short: semiconductors.

Who made the most money from the housing crisis? ›

Subprime mortgage crisis

Sometimes referred to as the greatest trade in history, Paulson's firm made a fortune and he earned over $4 billion personally on this trade alone. Paulson worked with Goldman Sachs to provide liquidity for low-performing home loans in Arizona, California, Florida and Nevada.

Does Michael Burry really listen to metal? ›

When he was younger, he noticed that it took him a lot of energy to look people in the eye, and said, "If I am looking at you, that's the one time I know I won't be listening to you". He is a fan of heavy metal music, including bands such as Obituary, Lamb of God, Amon Amarth, Slipknot, King Diamond and Pantera.

How much money did Michael Burry pay in premiums? ›

This represents a premium paid of $10,335,000 — much closer to the dollar value that Burry has traded with in the past. Additionally, in the same trade, we noticed a roll-down in 24,000 of the September SPY options, bought for $2.85 per contract, representing a premium paid of $6,840,000.

Did Michael Burry buy GameStop? ›

Michael Burry, in the fourth quarter of 2018, bought a $6.8 million position in GameStop Corp (NYSE:GME). Over the next few quarters he bought and sold the stock, following the classic Burry playbook, before liquidating his entire stake in the company in the third quarter of 2020.

How did Michael Burry shorten the housing market? ›

Burry gained fame for his moves during the 2008 crisis, a severe downturn that began with a US housing bust. Burry predicted a collapse in residential real estate prices as early as 2007 and then shorted a number of subprime deals through the use of credit default swaps.

How accurate is Michael Burry The Big Short? ›

Michael Burry Is The Only Real Name Used. The most glaring difference between the true story and the movie is the altering of The Big Short's main characters' names. The only character whose real name is used in the film is Dr. Michael Burry (Christian Bale).

Who predicted the 2008 crash in The Big Short? ›

Burry likely will be best known for being one of the few investors who predicted the subprime mortgage crisis that lasted from 2007 to 2010. He shorted the 2007 mortgage bond market by swapping CDOs and profited mightily from it. Vanity Fair. "Betting on the Blind Side."

How much money did Mark Baum make in 2008? ›

He made $100 million personally and $725 million for his investors. Mark Baum, based on Steve Eisman, earned $1 billion from the market crash, while Jared Vennett, based on Greg Lippmann, made $47 million from swap sales. The film portrays Michael Burry as a key figure in predicting the housing market crisis.

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