Michael Burry Discloses New Position in GameStop, Calls It a Long-Term Value Play

Michael Burry, the investor renowned for his prescient bet against the housing market, has revealed a new position in GameStop (GME). In a Substack post, Burry described the video game retailer as a long-term value play, citing CEO Ryan Cohen's strategy and the company's $4.7 billion cash reserves as key drivers. GameStop shares surged 6-8% following the announcement, closing up 4.44% on Monday.

Burry compared Cohen's approach to Warren Buffett's methodology at Berkshire Hathaway, emphasizing the asymmetric upside potential of GME. "Being long GameStop is almost as asymmetric as it gets these days in U.S. common stocks," he wrote. Cohen recently purchased 1 million shares for $21.4 million, further bolstering investor confidence ahead of a critical shareholder vote on performance-based compensation.

This marks Burry's second foray into GameStop, having initially invested in 2019 before exiting his position. His return signals renewed institutional interest in the meme stock, which gained notoriety during the 2021 retail trading frenzy.