A new investment fund backed by prominent hedge fund manager Michael Burry is launching with a focus on short-selling private credit assets, betting against high-risk lending markets. The fund aims to capitalize on perceived vulnerabilities in the private credit sector, where borrowing has surged amid low interest rates. Analysts note that while private credit offers attractive yields, it also carries significant default risks, particularly as economic conditions shift. This move marks Burry’s latest foray into high-conviction strategies following his well-known bets against mortgage-backed securities during the financial crisis.
With Burry as adviser, a new short-focused fund takes aim at private credit risks Reuters
