Michael Burry says he received an SEC subpoena on GameStop – .

Michael Burry says he received an SEC subpoena on GameStop – .

(Bloomberg) – Michael Burry, whose bullish position on GameStop Corp. helped lay the groundwork for the retail investor frenzy, said Friday it had received a subpoena from the Securities and Exchange Commission in connection with an investigation involving the company.
Bloomberg’s Most Read

“With everything going on in the world…” Burry wrote in a tweet, attaching a copy of the SEC letter. Burry, 50, did not respond to phone and email messages asking him to clarify the tweet, which appears to have been deleted. The SEC did not immediately respond to an email.

Burry, the head of Scion Asset Management who rose to prominence after his winning bet on mortgages before the 2008 financial crisis, took a bullish stance on GameStop in 2019. This helped spur the epic surge in the retailer’s shares. of video games during the stock meme frenzy earlier this year. In January, he said the rally had spiraled out of control, calling it “unnatural, senseless and dangerous”.

Read more: Michael Burry calls GameStop Rally “unnatural, insane”

That volatility, which also involved shares in AMC Entertainment Holdings Inc. and several other stocks, triggered Congressional hearings and an SEC review of practices such as payment for order flows.

In May, GameStop said it received a voluntary request from the regulator asking for information related to trading of its securities and the shares of other companies, according to a filing. SEC Chairman Gary Gensler said earlier this month that the agency was “pretty close” to releasing a much-anticipated report analyzing stock movements.

Burry’s company said it held a 2.4% stake in GameStop as of September 30, 2020.

(Updates with the meme stock frenzy in the third paragraph, Gensler in the fifth.)

Bloomberg Businessweek Most Read

© 2021 Bloomberg LP


Please enter your comment!
Please enter your name here