What is Michael Burry Net Worth?

Michael Burry: The Investor Who Predicted the Subprime Mortgage Crisis

Michael James Burry, born on June 19, 1971, in San Jose, California, is a renowned American investor and hedge fund manager. He gained fame for founding the hedge fund Scion Capital in 2000 and accurately predicting and profiting from the subprime mortgage crisis that unfolded between 2007 and 2010. Burry’s investment strategies and unique insights have set him apart in the world of finance.

Early Life and Education

Burry’s journey began in San Jose, where he grew up and attended Santa Teresa High School. Despite facing challenges like losing his left eye to cancer at a young age, he pursued higher education with determination. Burry studied economics and pre-med at UCLA, obtained an MD from Vanderbilt University School of Medicine, and briefly pursued a residency in pathology at Stanford University Medical Center. It was during this time that his interest in financial investing grew.

Investment Career and Success

After leaving his medical career behind, Burry founded Scion Capital in 2000, drawing on an inheritance and loans to kickstart his hedge fund. His investment approach, rooted in the principles of value investing, quickly gained attention for its success. Burry’s early achievements included outperforming the S&P 500 even during market downturns, showcasing his knack for identifying undervalued assets.

One of Burry’s most notable moves was his early focus on the subprime mortgage market. By analyzing mortgage lending practices, he foresaw the impending collapse of the real estate bubble and took significant short positions against vulnerable subprime deals. Despite facing skepticism from some investors, Burry’s predictions proved accurate, resulting in substantial profits for himself and his clients.

Current Ventures and Investments

In 2013, Burry reopened his hedge fund under the name Scion Asset Management, emphasizing investments in water, gold, and farmland. His unconventional investment choices, such as shorting Tesla in 2020, have continued to draw attention in financial circles. Burry’s insights into market trends and his willingness to go against popular sentiment have solidified his reputation as a maverick investor.

Michael Burry’s Net Worth in 2024

As of 2024, Michael Burry’s net worth is estimated to be substantial, reflecting his successful investment career and the profits he has generated for himself and his clients over the years. While specific figures may vary, Burry’s financial acumen and track record of making shrewd investment decisions have likely contributed to his wealth.

Frequently Asked Questions (FAQs)

1. Why Did Michael Burry Close His Fund?

Michael Burry shut down his hedge fund, Scion Capital, in 2008 to focus on personal investments and his family, following his success in predicting the subprime mortgage crisis.

2. What Does Michael Burry Own Now?

As of the fourth quarter of 2024, Michael Burry’s top holdings include Alibaba Group Holding Ltd., JD.com Inc., HCA Healthcare Inc., Oracle Corp., and other significant investments through Scion Asset Management.

3. What Is Michael Burry Shorting Now?

In the third quarter of 2024, Burry hedged against the global semiconductor market and has a history of shorting high-flying technology stocks and funds, including Cathie Wood’s ARK Innovation ETF and Tesla Inc.

4. What Was the Subprime Crisis or Meltdown?

The subprime mortgage crisis was a period of financial turmoil starting in 2007, characterized by a surge in high-risk mortgages defaulting, leading to the Great Recession due to the collapse of the housing market.

5. What Is ‘The Big Short’?

‘The Big Short’ is a 2015 film adaptation of Michael Lewis’ book, focusing on financial professionals like Michael Burry who predicted and profited from the housing bubble collapse in 2007 and 2008, offering insights into the financial crisis.