'Big Short' Burry eyes small caps amid passive 'bubble' - reports

Small-cap stocks left neglected

Michael Burry, the hedge fund investor immortalised by Michael Lewis' The Big Short, is increasing his firm’s exposure to US small caps amid a warning of a "bubble" in ETFs and passive products.

Burry, who famously shorted mortgage securities in the run up to the Global Financial Crisis, told Bloomberg that the cash pouring into index-tracking products skews toward large-cap companies meaning smaller value stocks are neglected. 'This is not going to end well': Buyers warn bonds will not be safe haven of the past in next market correction It follows disclosures to the US Securities and Exchange Commission (SEC) from Burry's Scion Asset Management, which revealed major activist stakes in at least four US- and South Korean-based small-cap companies. Burry, who was played by C...