Michael Burry Bets On Farmland, Gold, Small Tech and "Special Situations" in Distressed Real Estate

Dr. Michael Burry, former hedge fund manager and main character in Michael Lewis's book, "The Big Short", thinks farmland (with water on site), gold, small tech companies in Asia and "special situations" in distressed real estate (raw land cheapest) are attractive investments. He doesn't see a robust recovery ahead and prefers alternative investments that are uncorrelated with the overall market (see video #1). You know who else likes gold and farmland? Marc Faber.

Burry ran hedge fund Scion Capital and made billions shorting bundles of mispriced subprime mortgage securities in CDOs using credit default swaps. He was the first one to buy insurance from the big banks. Everyone else followed suit, from big hedge funds to other banks hedging their long exposure. See the 60 Minutes interview from March, 2010.

He still thinks the housing market is "artificial" and the Government needs to get out the way (video #2).
  • There are 2.5-3 million homes where the homeowners are more than 9 months past due and are not getting notices, they are living there for free.
  • Fannie and Freddie are special purposes vehicles by our Government to support the housing market, 96-97% of mortgages are flowing through Fannie and Freddie, 3-4% from the private market.
  •  They are withholding properties from sale and the foreclosure process.

Read the full article at Bloomberg.com. Also, watch Alan Greenspan respond to Michael Burry's New York Times op-ed on ABC News (and a challenge from Peter Schiff).

Comments

  1. just invested in distressed UK farmland property - defensive play with a pretty good yield whilst protecting my capital from inflation (which is creeping up in UK (50% over BOE target!) So bang mr Faber - you cant go wrong listening to this guy - been following him since 2007

    ReplyDelete
  2. FULL TRANSCRIPT, these are just video clips: http://financetrends.blogspot.com/2010/09/michael-burry-up-and-coming-macro-star.html (via @financetrends)

    ReplyDelete
  3. Thanks for your continued coverage of berry.

    I think its hard to read about him and not feel some sort of connection in the sense we are all searching for our place in the investment world..... reading, learning, trading, investing, thinking all in our own original thought.

    ReplyDelete
  4. new computer...little slow adding back bookmarks.

    ReplyDelete

Post a Comment