Valuablesx

Mark Baum: The Big Short True Story of Steve Eisman | Mark Baum: Net Worth 2023

The man behind The Big Short “Steve Eisman” (Mark Baum). Steve Eisman became famous as Mark Baum after The Big Short movie because his character’s name in the film was Mark Baum. Steve Eiseman was born on 8 July 1962. He is an American investor and businessman. He spent his childhood in New York City, USA. His father’s name is Elliot Eisman and his mother’s name is Lillian Eisman. His parents work in the finance sector. Steve Eiseman received his education at Yeshivas School in New York City. After completing his education, Steve joined Oppenheimer as an equity analyst. Eisman married in 1989, his wife’s name is Valerie Feigen. Depicted as Cynthia in The Big Short Movie.

Mark Baum: The Big Short True Story of Steve Eisman

Steve Eisman rose to prominence after “The Big Short Movie”, which came into the limelight mainly after the 2008 stock market crash. Eisman is known for betting against Collateral Debt Obligation (CDO).

In this film, Eisman’s name is changed to Mark Baum, portrayed by Steve Carell (Actor). The Big Short was an Oscar-winning film in 2015. The film focuses on the collapse of the housing bubble in 2008.

The Big Short focuses on the decisions of the government and the collapse of the big banks in America. The story begins with Michael Bury who was the manager of Scion Capital Hedge Fund. Michael Burry came to know that many people are unable to pay their loan installments. He checked that banks are giving housing loans without much verification. And those people also get loans who do not have proof of income. Later this type of home loan was also known as a subprime home mortgage.

You may like this: The stock market maths: Jim Simons Trading Strategy & Jim Simons Net Worth

Then in 2005, Michael decided to short-sell the housing mortgage market, believing that housing prices would fall. And after some time Dr. Michael Bury discovered a new tool called Credit Default Swap (CDS). He short-sold the housing mortgage market through CDS.

Shortly after, Jared Vennett (Ryan Gosling), an employee of Deutsche Bank, learns of Michael Bury’s credit default swap (CDS) as he was holding a high position at the bank. And at a time when the whole world was chasing CDOs, Dr. Michael Bury was the only person to buy a CDS. And had recognized the poor condition of the market. They agreed with Michael Bury’s analysis. Jared Vennett discusses this with his client, Mark Baum (Steve Eiseman), a hedge fund manager.

Eisman did not believe it at first because how can such big banks and rating agencies make this mistake. But he started investigating it at his level. After some time he came to know that rating agencies are giving AAA rating even to those CDOs whose quality is poor. For this, the bank has also given incentives to the rating agency. And Eisman has confirmed that the housing finance market is about to crash. And they decide to buy CDS in maximum quantity. So that they can short the bubble of the housing finance market.

You may like this: The prediction expert of stock market: Dr Michael Burry & Michael Burry Net Worth

After some time housing mortgage loans start defaulting. And after which many small investment banks file bankruptcy. The talk of CDO default starts spreading in the market and the stock market starts falling. After this Michael Burry covers all his deals. Michael Burray earns a return of 500% from the housing market collapse. Michael Burry gains about $100 million from this market crash.

How much did mark baum make

Mark Baum (Steve Eisman) still doesn’t cut his deals. They wait for the time, and that time has come. Lemon Brothers, one of America’s largest investment banks, files bankruptcy. It was the biggest bankruptcy ever in the history of the world. After this the stock markets of the whole world crash. He knew it all right, now Mark covers his deals. They make a profit of 1 billion dollars from this market crash. Which is many times more than Michael Burry. The character of Mark Baum in this film is based on the real life story of Steve Eisman.

After this Steve Eisman joins FrontPoint Partner which is a unit of Morgan Stanley. By 2010, they start managing $1 billion. In 2011 he left FrontPoint Partners. And 2012 start a new firm named Emrys Partners. This firm is started with a capital of 23 million. And this firm is closed in 2014 due to not getting good returns from stock market. At present, the asset value of Emrys Partners is estimated at 185 million dollars.

You may like this: The Pursuit of Happyness Chris Gardner & Chris Gardner Net Worth

Newburger barman

In 2014 he joined Neuberger Berman in which he took over as Managing Director and Portfolio Manager. Neuberger Berman is a partner firm. Steve Eisman has a partnership with his parents in this firm. At Neuberger Berman, Steve manages portfolios for wealthy clients.

The Big Short Book

The Big Short Book is written by Michael Lewis, the book was published on 15 March 2010. This book is based on the housing bubble (subprime housing mortgage) of 2007-2008. And it has been on The New York Times Best Seller List. Big Short Movie is also based on the real life story of the same book which was released in 2015. This book tells about those people who are able to make money even from market crash. And don’t panic in the face of adversity. When almost everyone’s money is lost in the market, some people make good profits even in this time.

You may like this: The investor of future: Cathie Wood Stocks & Cathie Wood Net Worth

Some of these people, companies and banks have also been told in this book. Those who have suffered a lot from this incident. Many never emerged and were completely ruined. In this, AIG suffered a loss of $ 99 billion. Howie Hubbler lost $9 billion. It was considered the third largest personal loss in history.

The Big Short Movie

Seeing the popularity of The Big Short book, it was decided to make a film on it. Paramount purchased all rights to it. After which The Big Short Movie was released in September 2015. Which was later awarded the Oscar Award.

Mark Baum Net Worth

Steve Eisman has struggled a lot in his life. He has also taken very big risks in his life to become his wealth. Today the net worth of Mark Baum (Steve Eisman) is approx $19.4  million dollars.

FAQs: Mark Baum: The Big Short True Story of Steve Eisman | Mark Baum: Net Worth