Profiting from the Big Short: Who Really Made Money and How Much?
Discover the individuals who reaped financial gains in The Big Short. Uncover the secrets behind the profits made by key characters in the movie.
The Big Short is a film that recounts the events of the 2007 housing market crash, showcasing how certain individuals, inspired by real-life personalities, profited significantly from the financial turmoil. One such character is Michael Burry, portrayed by Christian Bale in the 2015 biographical comedy-drama. Burry accurately predicted the housing market crash and leveraged this foresight to benefit himself and his investors through his hedge fund, Scion Capital. This allowed them to capitalize on the crisis that resulted in widespread job and home losses.
The movie also features other notable figures like Steve Carell as Mark Baum, Ryan Gosling as Jared Vennett, John Magaro as Charlie Geller, and Finn Wittrock as Jamie Shipley. Each of these characters, alongside Burry, managed to make money from the housing market collapse as depicted in Adam McKay's satirical portrayal. However, the profits generated by these individuals during the late 2000s financial crisis varied greatly, with some earning hundreds of millions of dollars while others received tens of millions.
Michael Burry Makes $100 Million In The Big Short
Christian Bales Character Walked Away Considerable Richer
Christian Bale as Michael on the phone, looking up in The Big Short - Christian Bales Character Walked Away Considerable Richer - Michael Burry Makes $100 Million In The Big Short
Even after the backlash he faced after the 2000s financial crisis, Burry continues to make money
In the movie "The Big Short," Michael Burry, an investor and hedge fund manager, predicted the crash of the United States housing market in 2007, a few years before it actually happened. He noticed the instability of the market by observing high-risk subprime loans. Burry took action by shorting market-based mortgage-backed securities based on his prediction. When his theory proved to be correct, Burry earned $100 million for himself and $725 million for his investors through Scion Capital, as reported by Vanity Fair.
After the housing market crash, Burry decided to close down his hedge fund due to a damaged reputation, IRS audits, and to explore other investment opportunities. Despite this, he continued to make personal investments following the events depicted in "The Big Short." A few years later, he reopened his hedge fund under the new name Scion Asset Management.
The Real Mark Baum Made $1 Billion From The Housing Market Crash
In August 2023, Burry made a prediction of another stock market crash. As a result, his investment firm decided to purchase $866 million in put options against a fund tracking the S&P 500 and $739 million against a fund tracking the Nasdaq 100. Despite facing backlash following the 2000s financial crisis, Burry managed to continue making money.
Steve Carell's The Big Short Character Made Considerable More Than Christian Bale's
Jeremy Strong as Vinny Daniel, Steve Carell as Mark Baum, and Ryan Gosling as Jared Vennett converse in The Big Short. - Steve Carell's The Big Short Character Made Considerable More Than Christian Bale's - The Real Mark Baum Made $1 Billion From The Housing Market Crash
In the movie "The Big Short," Steve Carell portrayed a character named Mark Baum. Although Baum was based on real-life hedge fund manager Steve Eisman, the producers decided to change his name for the film. Eisman was known for his role at FrontPoint Partners, a small trading firm, where he famously bet against collateralized debt obligations to profit from the housing bubble collapse in the late 2000s.
Eisman, portrayed as Baum in the film, and his team reportedly made around $1 billion from the market crash, according to Historic Cornwall and the movie. While the exact amount Eisman himself pocketed is unknown, it is clear that he made millions of dollars from the financial turmoil.
The Real Jared Vennett Made $47 Million From Swap Sales
Ryan Gosling's Character Walked Away With Almost $50 Million After The Big Short
Ryan Gosling as Jared Vennett looking off to the side in The Big Short. - Ryan Gosling's Character Walked Away With Almost $50 Million After The Big Short - The Real Jared Vennett Made $47 Million From Swap Sales
In The Big Short, Jared Vennett, portrayed by Ryan Gosling, was a character inspired by Greg Lippmann, a hedge fund manager and executive at Deutsche Bank. Like Michael Burry, Vennett believed in the impending collapse of the housing market and made a significant profit by selling swaps. In the movie, this storyline culminates with Lippmann earning $47 million from the swap sales.
Charlie Geller & Jamie Shipley Make $80 Million In The Big Short
John Magaro And Finn Wittrock's The Big Short Characters Made Almost $100 Million Between Them
Finn Wittrock as Jamie Shipley and John Magaro as Charlie Geller in The Big Short. - John Magaro And Finn Wittrock's The Big Short Characters Made Almost $100 Million Between Them - Charlie Geller & Jamie Shipley Make $80 Million In The Big Short
They were interested in understanding the forecast of the housing market crash in 2007, and similar to the other important characters shown in the movie, Jamie and Charlie used this information to their benefit.
The Big Short also focused on the characters Charlie Geller and Jamie Shipley, portrayed by John Magaro and Finn Wittrock. In the film, their last names were changed to Ledley and Mai, respectively. They co-ran Cornwall Capital (referred to as Brownfield Fund in the movie), a private investment firm in New York City. Like others in the movie, Jamie and Charlie learned about the impending housing market crash in 2007 and took advantage of this knowledge.
After discovering the prediction of the housing market crash, Jamie and Charlie decided to short the subprime mortgage market before the financial crisis of the late 2000s. Their actions resulted in them making approximately $80 million, as depicted in the film and confirmed by Historic Cornwall. Following the events of The Big Short, Jamie and Charlie went their separate ways, and in 2014, Cornwall Capital was acquired by H.I.G. Capital.
Editor's P/S:
The article "The Big Short: How Michael Burry and Others Made Millions from the Housing Market Crash" provides a fascinating insight into the financial turmoil of the late 2000s. It highlights the foresight and ingenuity of individuals like Michael Burry, Steve Eisman, and Greg Lippmann, who capitalized on the impending housing market crash.
While the movie portrays the financial gains made by these characters, it doesn't delve into the broader consequences of the financial crisis. The collapse of the housing market led to widespread job losses, home foreclosures, and a global recession. It's important to remember that the profits made by a few individuals came at the expense of countless others who suffered financial hardships.
