'Big Short' investor Michael Burry made a 1,500% gain on GameStop during its Reddit-fueled rally

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'Big Short' investor Michael Burry made a 1,500% gain on GameStop during its Reddit-fueled rally
Getty Images/ Astrid Stawiarz

Michael Burry is best known as the investor who made a billion-dollar bet against the US housing market and won. His latest victory could stem from an unlikely source: GameStop.

Burry's Scion Asset Management owned 1.7 million shares in GameStop at the last count, which were worth $17 million at the end of September. The video-game retailer's stock price has skyrocketed since then, soaring as much as 145% to a record high on Monday as day traders piled in, thumbing their noses at short-sellers.

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Scion's stake surged in value to $271 million at the peak, representing an almost 1,500% gain for Burry. GameStop shares closed at $148 on Tuesday, valuing Scion's position at around $252 million - a 1,380% gain in less than four months.

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Burry, who was portrayed by Christian Bale in the movie adaptation of Michael Lewis' book "The Big Short," could have made an even bigger profit. He owned 3 million shares in GameStop at the end of March last year, which would have been worth as much as $478 million on Monday. However, he reduced the position by about 38% over the next six months.

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Along with Chewy cofounder Ryan Cohen, Burry has been agitating for changes at GameStop for a while. The Scion boss penned a letter to the company's directors in August 2019, arguing the low stock price and massive short interest suggested a lack of faith in management, and calling for a massive share buy-back.

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