In the cinematic depiction of the 2008 financial crisis, The Big Short, Mark Baum (based on real-life money manager Steve Eisman) made the most money. His fund generated a staggering profit of $1 billion by betting against the housing market.
Key Players and Their Earnings
The film showcases several individuals and groups who foresaw the impending housing market collapse and profited significantly from it. Their earnings varied, reflecting different strategies and scales of investment.
Here's a breakdown of the key players and the money they made:
| Character (Film) | Real-Life Counterpart | Money Made |
|---|---|---|
| Mark Baum | Steve Eisman | $1 billion |
| Michael Burry | Michael Burry | $100 million |
| Jared Vennett | Greg Lippmann | $47 million |
Detailed Breakdown of Earnings
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Mark Baum (Steve Eisman): Portrayed by Steve Carell, Mark Baum leads a Scion Capital-esque fund (FrontPoint Partners in real life) that vehemently disbelieves the stability of the housing market. His aggressive shorting of subprime mortgage bonds ultimately yielded the highest return, securing a profit of $1 billion. This substantial gain made his group the top earner in the depicted events.
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Michael Burry: Played by Christian Bale, Dr. Michael Burry was the first to predict the impending collapse and bet against the housing market by investing over $1 billion of his clients' money into credit default swaps. Despite initial skepticism and investor backlash, his hedge fund, Scion Capital, eventually made a profit of $100 million for himself, with his investors seeing a gain of $720 million.
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Jared Vennett (Greg Lippmann): Ryan Gosling's character, Jared Vennett, is based on Deutsche Bank bond salesman Greg Lippmann. Vennett acted as an intermediary, effectively selling credit default swaps to investors looking to bet against the housing market. Through these swap sales, his division earned $47 million. While a significant sum, it was less than the direct profits made by those who initiated the short positions.
Mark Baum's group ultimately made the most money, achieving a profit of $1 billion, largely due to their deep conviction and aggressive positioning in the market's downturn.
