Behind bars lies a booming business opportunity investors are rushing to capitalize on. Private prison operators CoreCivicCXW

and GEO GroupGEO

have seen their stocks soar by 104% and 34%, respectively, in the past year — ushered higher by the Trump administration’s aggressive immigration policies, which are creating unprecedented demand for detention facilities. These companies are positioning themselves as essential partners in the government’s mass deportation strategy, with executives openly celebrating what they anticipate will be historic growth opportunities.

• CoreCivic CEO Damon Hininger told investors, “This is truly one of the most exciting periods in my career,” expecting significant growth that could generate an additional $1.5B in revenue.
• This positive outlook contrasts with the previous risks posed by the Biden administration’s pledge to end private prison contracts and banks’ decisions to stop financing these businesses.

Betting on detention: The industry’s resilience hasn’t gone unnoticed by savvy investors. Michael Burry, the prescient fund manager who famously predicted the 2008 housing market collapse, made private prison operators a cornerstone of his investment strategy, with GEO Group and CoreCivic comprising over 50% of his portfolio at one point. While Burry has since adjusted his holdings, his early bet has proven remarkably profitable as investors piled into the stocks. With ICE expected to need at least 100K detention beds — more than double the current capacity — to fulfill deportation goals, private operators appear poised for continued growth despite ongoing concerns about facility conditions and humanitarian issues.