'Big Short' investor Michael Burry is calling passive investment a 'bubble.' He's not the only finance luminary sounding the alarm. Michael Burry, the investor made famous by "The Big Short," told Bloomberg Wednesday that he sees a bubble in passive investing. Many other money managers have called out the investment strategy, which they say isn't the best course of action for investors in the current market environment. Read more on Markets Insider. Michael Burry, the investor that famously shorted mortgage securities before the 2008 housing crisis, told Bloomberg on Wednesday that he sees a "bubble" in passive investing. That bubble is ignoring small-cap stocks, said Burry, who was a key figure in Michael Lewis' bestselling book "The Big Short" and was played by Christian Bale in the movie with the same name. The problem is happening because the pillars of passive investing — exchange-traded funds and index-based assets— mostly focus on bigger companies. This puts downward pressure on the stocks of smaller companies and has effectively "orphaned smaller value-type securities globally," he wrote to Bloomberg in an email.