- Michael Burry briefly reached a 1,500% gain on his GameStop investment on Monday.
- The “Big Short” investor’s 1.7 million shares soared in value to $US271 million at the peak.
- GameStop shares surged up to 145% on Monday as day traders piled in.
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Michael Burry is best known as the investor who made a billion-dollar bet against the US housing market and won. His latest victory could stem from an unlikely source: GameStop.
Burry’s Scion Asset Management owned 1.7 million shares in GameStop at the last count, which were worth $US17 million at the end of September. The video-game retailer’s stock price has skyrocketed since then, soaring as much as 145% to a record high on Monday as day traders piled in, thumbing their noses at short-sellers.
Scion’s stake surged in value to $US271 million at the peak, representing an almost 1,500% gain for Burry. GameStop shares closed at about $US77, valuing Scion’s position at around $US130 million â€” a 650% gain in less than four months.
Burry, who was portrayed by Christian Bale in the movie adaptation of Michael Lewis’ book “The Big Short,” could have made an even bigger profit. He owned 3 million shares in GameStop at the end of March last year, which would have been worth as much as $US478 million on Monday. However, he reduced the position by about 38% over the next six months.
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Along with Chewy cofounder Ryan Cohen, Burry has been agitating for changes at GameStop for a while. The Scion boss penned a letter to the company’s directors in August 2019, arguing the low stock price and massive short interest suggested a lack of faith in management, and calling for a massive share buy-back.