‘The Big Short’ Investor Who Famously Predicted 2008 Recession Sells All But One Of His Stocks

Scion Asset Management founder Michael Burry — whose story was featured in the film “The Big Short” after he predicted the 2008 housing crisis — has sold all of his firm’s stocks except for one, according to a Monday filing with the Securities and Exchange Commission.

After holding stock in firms such as Meta and Alphabet by its previous filing submitted at the end of March, the firm has cut its holdings from $165 million to $3.3 million. Scion reported holding no stocks save 500,000 shares of GEO Group by the end of June, which invests in private prisons and mental health systems.

Burry made a name for himself by betting against technology stocks during the dot-com bubble, earning 55% returns while the S&P 500 dropped 12%, according to a profile in Business Insider. Burry likewise bet against the housing market after evaluating bank balance sheets and subprime mortgage data, earning $100 million for himself and $700 million for his investors — an experience that formed the basis of the 2015 film “The Big Short,” in which actor Christian Bale stars as Burry.

At the end of last week, Burry warned about consumers’ tendency to spend even through economic turmoil. “Net consumer credit balances are rising at record rates as consumers choose violence rather than cut back on spending in the face of inflation,” he said per The Street. “Remember the savings glut problem? No more. COVID helicopter cash taught people to spend again, and it’s addictive. Winter coming.” – READ MORE