Michael Burry’s bullish position on GameStop Corp. in 2019 helped lay the groundwork for one of the biggest retail investor frenzies in recent memory. Now the famous fund manager warns that GameStop is manic the rally has escaped his hands.
“She is OK $ GME on your radar, and you’ve done well, I’m really happy for you, ”Burry tweeted on Tuesday, best known for his previous bet on mortgages before the 2008 financial crisis. what is happening now should have legal and regulatory repercussions. This is unnatural, crazy and dangerous. “
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Read more: How WallStreetBets pushed GameStop to share with the Moon
Burry is “neither long nor short,” GameStop said in a brief email response to Bloomberg questions Tuesday. Its investment firm owned a 2.4% stake as of Sept. 30 after analyzing its holdings in the third quarter, according to regulatory records compiled by Bloomberg.
Burry, who became famous after his mortgage business appeared in “The big short, ”helped draw attention to GameStop as early as mid-2019, when its Scion asset management was done announced a 3.3% stake in the besieged video game retailer and urged the company to buy shares. His position has been cited by some of the traders who have flooded online forums in recent weeks with posts imploring their betting partners to buy.
GameStop’s 642% increase since Jan. 12, plus another 41% profit after Tuesday’s trading hours, has captivated Wall Street, tweet of Elon Musk and hindered short sellers, including those of Gabe Plotkin Melvin Capital and Andrew Left’s Citron Research. It has also stimulated the request for an investigation by the Securities and Exchange Commission, although experts say yes difficult-to-prove chat room posts are part of an illicit process scheme manipulate the market.
(Updates with Burry’s comment in the third paragraph.)