Michael Burry has been finding opportunities in farmland, gold, and small technology firms. Mr. Burry, who closed his Scion Capital hedge fund in 2008, is now managing his personal investments and looking for opportunities that are not correlated with moves in the overall market. Michael Lewis profiled Mr. Burry and several other investors in The Big Short, a book covering the sub-prime mortgage lending bubble. Read this article for more details.
It is interesting to review Michael Burry’s letter to his investors written in November 2006. ‘A Primer on Scion Capital’s Subprime Mortgage Short’ is Dr. Burry’s attempt to explain his decision to take a bearish position in credit default swap contracts. Based on accounts in The Big Short, which we reviewed last week, Dr. Burry’s investors were highly skeptical of his short position and many were threatening to withdraw funds. Read this article for more information.
Perhaps no other government policymaker has suffered as much reputational damage due to the housing collapse as former Federal Reserve Chairman Alan Greenspan. Mr. Greenspan has defended his record in recent months and recently published a paper outlining his views regarding the housing bubble and subsequent crash. In Mr. Greenspan’s view, Fed policy actions had little to do with the crash. Read this article for more details and a link to Michael Burry’s recent New York Times op-ed article.