Michael Burry Closes Scion Asset Management, Eyes Future Opportunities

Post by : Bianca Suleiman

Michael Burry, renowned for his pivotal bet against the US housing market in 2008, is distancing himself from traditional hedge fund management. His company, Scion Asset Management, officially ended its SEC registration on November 10, signaling a potential exit from attracting outside investors. Burry hinted at forthcoming changes in a social media post, suggesting, “on to much better things Nov 25th.”

Famous for his role in The Big Short, Burry has voiced concerns regarding current market dynamics, particularly the rapid rise of AI, including the striking surge of Nvidia Corp. to a staggering $5 trillion market cap. Scion's previous filings indicated bearish stances on both Nvidia and Palantir Technologies Inc., showing his skepticism surrounding the enduring nature of an AI-led market surge.

Recent disclosures for Q3 revealed that Scion liquidated most of its listed equity portfolio while acquiring put options on Nvidia and certain US-listed Chinese technology firms. Burry also highlighted a $9.2 million investment in Palantir, allowing him to sell shares at $50 by 2027—underscoring his contrarian viewpoint amidst widespread AI enthusiasm.

Investment advisors managing assets exceeding $100 million are generally required to register with the SEC. The recent deregistration of Scion follows a March report indicating $155 million in managed assets, raising questions about Burry's intentions—whether he's exiting hedge fund activities or shifting focus to private investments.

Burry had previously shut down his first hedge fund, Scion Capital, in 2008 after effectively capitalizing on the housing crisis, yielding a fivefold return for investors from 2000 to 2008. His latest endeavors suggest he may be gearing up for yet another bold investment strategy that could disrupt the market yet again.