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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (56480)	12/31/2015 1:37:18 AM
From: Jurgis Bekepuris	Respond to of 78750

For those of us who have no idea what you're talking about, what was the "big call"? The Big Short ( read the book or watch the movie imdb.com or find Mike's letters to investors )

To: Elroy who wrote (56480)	12/31/2015 6:23:10 PM
From: John Koligman	1 Recommendation Recommended By Jurgis Bekepuris Respond to of 78750

Excerpt from Wiki on Burry... In 2005, Burry started to focus on the subprime market. Through his analysis of mortgage lending practices in 2003 and 2004, he correctly forecast a bubble would collapse as early as 2007. Burry's research on the runaway values of residential real estate convinced him that subprime mortgages, especially those with "teaser" rates, and the bonds based on these mortgages would begin losing value when the original rates reset, often in as little as two years after initiation. This conclusion led Burry to short the market by persuading Goldman Sachs to sell him credit default swaps against subprime deals he saw as vulnerable. This analysis proved correct, and Burry profited accordingly. [7] [8] [9] Ironically Burry's since said, "I don't go out looking for good shorts. I'm spending my time looking for good longs. I shorted mortgages because I had to. Every bit of logic I had led me to this trade and I had to do it". [2] Though he suffered an investor revolt before his predictions came true, Burry earned a personal profit of $100 million and a profit for his remaining investors of more than $700 million. [3] Scion Capital ultimately recorded returns of 489.34 percent (net of fees and expenses) between its November 1, 2000 inception and June 2008. The S&P 500 returned just over two percent over the same period. [3] According to his website, Burry liquidated his credit default swap short positions by April 2008 and did not benefit from the taxpayer-funded bailouts of 2008 and 2009. [10] He subsequently liquidated his company to focus on his personal investment portfolio. [10]