Video of Michael Burry On Bloomberg's RiskTakers (I Was 100% Confident)

Courtesy of Business Insider (read more there)
Former hedge fund manager Michael Burry, who was profiled in Michael Lewis's book "The Big Short", was featured on Bloomberg's RiskTakers a few days ago. I embedded the video after the jump. The picture with him and the black swans is from his 2007 ("I told you so") investor letter. He returned 472% for his investors in eight years (2000-2008). If interested, read his original thesis on his big subprime mortgage short at "A Primer on Scion Capital’s Subprime Mortgage Short - November 7, 2006".

Burry didn't give any investment calls in this video, but in an interview last year on Bloomberg TV he said was bullish on gold, small asian tech, farmland with water on site and distressed, special situations in real estate. I'm not sure if the same holds true today. Below are a few quotes from the video:

"Ironically, I'm in this book, 'The Big Short,' but I'm not a big short. 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. And I had to pull back on equities, because I saw what was coming I thought would affect everything."

"I tried to raise a fund, Milton’s Opus (being Paradise Lost) to just do this because I wanted to do it in big size, but I couldn’t get it going. And the urgency came from my belief that I can’t be the only one thinking this. Somebody will see it and when they do, spreads will blow out wide. I want to get it on when it’s cheap."

"My positioning with my investors had always been from the beginning, I need 3-5 years. I saw the time clock. I knew when it was going to happen. We just needed to make it through to that period. And that was a hard sell when it moved against us initially"

"Even when there was the investor rebellion and even when we had these difficulties in ’06, I was 100% confident when it was going to happen and I would tell people: just wait. We’re on the cusp, 2007, it will happen."

"I was actually 100% confident. I thought it was a sure thing. Because basically those mortgages started going bad by late 2005 and 2006. They started going bad early."

Courtesy of BloombergTV:


Watch Burry's lecture at Vanderbilt University a few months ago; His interview with 60 Minutes in March 2010; Op-Ed in the New York Times on Alan Greenspan and the Fed "I Saw the Crisis Coming. Why Didn’t the Fed?"; His thoughts on gold, small Asian tech, distressed-special situations in real estate and farmland last year, and listen to his *FCIC interview (Financial Crisis Inquiry Commission) where he explains how he put on his CDS position with various investment banks.

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