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Michael Burry, head of Scion Asset Management and an important figure in the great short film based on the book of the same name by Michael Lewis.
Astrid Stawiarz / Getty Images
A high profile investor a
GameStop
called “unnatural, crazy and dangerous” the recent rise in stocks.
Investor Michael Burry, head of Scion Asset Management and a leading figure in The great short film book and film, it was said in a publication now deleted at
Twitter
which he believes should have legal repercussions for what happens with GameStop trading. Burry made a substantial investment in GameStop in 2019 and noted that he is pleased with investors who made money after his initial investment in retail.
“If I put $ GME on the radar and you did it right, I’m really happy for you,” he wrote on Tuesday in a quickly deleted tweet. “However, what is happening now should have legal and regulatory repercussions. This is unnatural, crazy and dangerous. “
Burry said De Barron in an email that deleted the post because it tagged an incorrect SEC application account. After publication, Burry re-posted the same comment, this time with the appropriate tagged account.
GameStop shares have risen more than 3.415% in the past 12 months, adding to a wave of excitement for retail investors and crushing short-term sellers. Speculative traders on Reddit’s WallStreetBets forum directed short interest in the shares. For months he has been a favorite of this crowd and his faith has borne great fruit. This month’s rise was initially initiated by the announcement that Chewy co-founder Ryan Cohen and two former e-commerce firm executives would join the GameStop board. Cohen’s RC Ventures owns approximately 13% of GameStop shares.
In August 2019, when GameStop shares were below $ 4 per share, Burry revealed a 3% stake in the company. Burry thought the shares were undervalued, pointing to GameStop’s balance sheet and predicting that the next generation of video game consoles, which would come out in late 2020, would still include disk drives, expanding the relevance of GameStop.
Burry’s firm sold more than a million GameStop shares, or about 38% of its stake, during the September 2020 quarter, according to an SEC statement. Burry did not immediately return a follow-up email asking if he still had shares.
Burry’s investment has proved a huge success for those who followed him and stayed on for the past week. Shares of GameStop closed 92% to $ 147.98 on Tuesday, and shares flew higher in trading after hours after a shout from Tesla CEO Elon Musk.
GameStop representatives did not immediately return any requests for feedback on the stock move.
Write to Connor Smith at [email protected]