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Michael Burry, the head of Scion Asset Management and an important character in the short film based on the book of the same name by Michael Lewis.
Astrid Stawiarz / Getty Images
A profile investor in
GameStop
called the recent increase in stock, “unnatural, crazy and dangerous.”
Investor Michael Burry, head of Scion Asset Management and an important figure in The big short book and movie, he said in a now deleted post
Twitter
that he believes there should be legal repercussions for what happens with GameStop trading. Burry made a substantial investment on GameStop in 2019 and mentioned that he is happy for the investors who made money from his initial investment in retail.
“If I put GME $ on your radar and you did well, I’m really happy for you,” he wrote in a quick deleted Tweet on Tuesday. “However, what is happening now – should have legal and regulatory repercussions. This is unnatural, crazy and dangerous. “
Burry said Barron’s in an email deleting the post because it tagged a wrong SEC application account. After publication, Burry replied the same comment, this time with the account correctly labeled.
GameStop shares have risen more than 3.415% in the past 12 months, raising a surge of retail investor enthusiasm and crushing short sellers. The short interest in the action was targeted by speculative traders on the Reddit WallStreetBets forum. He was a favorite among the crowd for months, and their faith bore fruit. This month’s growth was initially triggered by an announcement that Chewy co-founder Ryan Cohen and two former e-commerce executives will join GameStop’s board of directors. Cohen’s RC Ventures holds approximately 13% of GameStop shares.
In August 2019, when the GameStop shares below were $ 4 per share, Burry revealed a 3% stake in the company. Burry believed that the shares were undervalued, indicating the balance of GameStop and predicting that the next generation of video game consoles, which will be launched in late 2020, will continue to include disk drives, extending the relevance of GameStop.
Burry sold more than a million GameStop shares, or about 38% of its stock, in the September 2020 quarter, according to an SEC filing. Burry did not immediately return a follow-up email asking if he still had shares.
Burry’s investment proved extremely successful for those who followed him and kept it last week. GameStop shares closed 92% on Tuesday, at $ 147.98, and shares flew higher in after-hours trading, following a call from Tesla CEO Elon Musk.
GameStop representatives did not immediately return a request for comment on the action’s move.
Write to Connor Smith at [email protected]