Michael Burry is having a moment. The one-eyed hedgie, who seems to have spotted the subprime problem before anyone else, has shot to fame in the wake of his starring role in the new Michael Lewis tome, The Big Short.
So here, via Market Folly, is an historical curio — Burry’s primer on shorting subprime mortgages, produced back in November 2006 for his bemused investors at Scion Capital, who thought they were backing an equity long/short guy, rather than punting against toxic debt…
Subprime: it’s back in the headlines – FT Alphaville
Subprime short, from the beginning – FT Alphaville
Learning from Michael Burry – Street Capitalist
I Saw the Crisis Coming. Why Didn’t the Fed? – Michael Burry in the NY Times