One of the biggest names on Wall Street has revealed to be bullish on copper despite his notoriously contrarian views.
Michael Burry, best known for predicting the subprime mortgage crisis 20 years ago and being portrayed in the movie The Big Short, has disclosed a position in a copper mining company.
That company is Ero Copper (TSX:ERO), a Canadian-based miner with copper and gold operations in Brazil.
Burry calls the investment an indirect bet on AI. “All those back at the house are going to be needing a lot of copper,” he wrote in his Substack post.
Burry, who closed his hedge fund Scion Asset Management last year, had previously bet against AI, including massive short positions in NVIDIA (NASDAQ:NVDA) and Palantir (NASDAQ:PLTR).
His copper investment thesis is based on a sharp mismatch between demand and supply of the industrial metal in the coming years.
In his newsletter, Burry cites analysis by Apollo Global Management (NYSE:APO) Chief Economist Torsten Slok, who earlier warned about the global mine supply pipeline.
“Copper discoveries with deposits containing at least 500,000 tonnes have fallen from double-digit annual totals in the 1990s and 2000s to one or two in recent years, with none in 2025,” Slok wrote in a research note.
In Ero Copper, Burry sees “a higher-cost copper producer” with the potential improved margins if the metal’s price remains elevated.
“Ero common does it for me,” he said, describing it as a mid-sized position.
This year, Ero expects to produce between 67,500 and 77,500 tonnes of copper. The company’s share price surged nearly 8% on Burry’s disclosure.
Year to date, the company’s stock has risen by almost 30%, taking its market capitalisation to C$5.37 billion ($5.37 billion).
Write to Jackson Chen at Mining.com.au
Main Image: Michael Burry | Facebook
