A preface before we get into this: Michael Burry has proven himself to be a rare fund manager. He has a great ability to identify a variant perception versus the Wall Street consensus and express that view in a deeply researched market position. As we learned in Michael Lewis’ book The Big Short, he had the courage of his conviction to stay with his position even as lots of others opposed it. The result was an incredible performance in the mid-2000s through the GFC — when real estate fell 32% nationally, and the S&P 500 crashed 58% peak-to-trough. Every long-only fund was deeply negative. I share that caveat ... (full story)