Michael Burry's wager was heavily featured in Michael Lewis’ bestselling book “The Big Short” and Christian Bale portrayed Burry in the 2015 film adaptation.
Burry told Bloomberg he sees passive investment as a “bubble” that leaves smaller companies ignored.
The investor said exchange-traded funds and index-based assets focus on larger companies and leave smaller-value stocks “orphaned” around the world.
His firm, Scion Asset Management, recently announced active investments in three small-cap companies in the US and South Korea.
Famed investor Michael Burry has told Bloomberg he sees passive investment strategies as a “bubble” that ignores small-cap stocks.
His comments are pegged to the fact that exchange-traded funds and index-based assets mostly focus more on bigger, more established companies. As investors find this passive investment increasingly appealing, smaller growth stocks are languishing in the background, Burry said.
