Legendary investor Michael Burry, best known for predicting the 2008 financial crisis, admitted in a candid Substack post on Tuesday that he sold his massive GameStop Corp. (NYSE:GME) position just weeks before the historic January 2021 rally.

Despite initiating the trade in 2019 and pushing the board toward the aggressive share buybacks that reduced the float, Burry's Scion Asset Management, which is now de-registered, exited in the fourth quarter of 2020, missing a potential $1 billion windfall.

Check out GME’s stock price here.

Selling Before The Explosion

Burry revealed that Scion held approximately 3 million shares with an average cost basis of roughly $3.32 (pre-split). However, he sold the entire position as the stock reached the mid-teens in late 2020.

Burry attributed the early exit to skepticism regarding activist investor Ryan Cohen. While he recognized Cohen as a “deep value investor” during a private ...