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Michael Burry, Who Once Called On SEC For GameStop Enforcement, Receives SEC Subpoena 8 Months Later

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Michael Burry, Who Once Called On SEC For GameStop Enforcement, Receives SEC Subpoena 8 Months Later

Investor Michael Burry, known for “The Big Short,” is a widely followed voice in the stock community. Burry has also been known to stir up trouble with tweets that get deleted on Twitter Inc (NYSE: TWTR).

He was also a figure in the GameStop Corp (NYSE: GME) storyline, which is among the biggest retail investing storylines of the last decade.

What Happened: Burry shared on Twitter that his Scion Asset Management received a subpoena from the U.S. Securities and Exchange Commission.

“A subpoena has been issued to Scion Asset Management LLC in the above-referenced investigation pursuant to a formal order entered by the United States Securities and Exchange Commission in the above-referenced investigation,” the order reads.

The subpoena is dated Sept. 21, 2021 and uses the subject line of “in the matter of GameStop Corp.”

Burry captioned his tweet sharing the subpoena with:

“So, who got an SEC subpoena over $GME? Actually, I know who, they’re on my subpoena. With all that’s going on in the world…”

Related Link: Not Just Tesla, Michael Burry Could Be Betting Against SpaceX With SPAC Stake As Well 

Why It’s Important: Burry was an investor in GameStop in 2019 before the height of a WallStreetBets, retail trader and short squeeze-fueled trading frenzy took shares of the video game retailer up over 1,000%.

Burry held a 3.3% stake in GameStop and urged the board to buy back shares. Burry also highlighted the large cash on hand position the company had and said the balance sheet “is actually in very good shape” at the time.

The noted hedge fund manager said that fears of concern over physical video game sales were overblown and new gaming consoles could “extend GameStop’s life significantly.

Burry owned 1.7 million GameStop shares worth $17 million at the end of September, 2020. The same stake would have been worth over $250 million in January 2021 had he not sold in the fourth quarter of 2020.

Burry lashed out at the large increase in the price of GameStop in January.

“If I put $GME on your radar, and you did well, I’m genuinely happy for you. However, what is going on now – there should be legal and regulatory repercussions. This is unnatural, insane and dangerous,” Burry tweeted while tagging the SEC Enforcement Twitter account in a since-deleted tweet.

Burry has made recent headlines for his sizable bets against Tesla Inc (NASDAQ: TSLA) and Cathie Wood's Ark Innovation ETF (NYSE: ARKK). 

GME Price Action: GME shares ended Friday's session down 3.26% at $185.16. Shares of GME have traded between $9.10 and $483 over the last 52 weeks and are up 915% year-to-date.

 

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Posted-In: Cathie Wood Michael Burry Scion Capital ManagementNews Hedge Funds SEC General Best of Benzinga

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