Post by : Badri Ariffin

Michael Burry, famed for his 2008 bet against the US housing market, is stepping away from traditional hedge fund management. His firm, Scion Asset Management, officially terminated its SEC registration on November 10, marking a potential closure or shift from outside investors. Burry hinted at upcoming developments with a social media post, teasing, “on to much better things Nov 25th.”

Burry, whose reputation soared from his role in The Big Short, has been vocal about market risks in recent months. He notably highlighted concerns over the AI boom, including Nvidia Corp.’s meteoric rise to a $5 trillion market value. Earlier filings revealed that Scion held bearish positions on Nvidia and Palantir Technologies Inc., reflecting skepticism about the sustainability of AI-driven market euphoria.

The third-quarter disclosures showed Scion liquidated nearly its entire listed equity portfolio and purchased put options on Nvidia and selected US-listed Chinese tech giants. Burry also specified a $9.2 million bet on Palantir, giving him the right to sell its shares at $50 in 2027—a clear signal of his contrarian stance in a market dominated by AI hype.

Investment advisers managing more than $100 million typically must register with the SEC. Scion’s deregistration, following a March report of $155 million in assets under management, raises questions about whether Burry is fully exiting hedge fund operations or moving toward private ventures.

Burry previously closed his first hedge fund, Scion Capital, in 2008 after executing a historic strategy that capitalized on the US housing crisis, multiplying investors’ funds fivefold from 2000 to 2008. His current moves suggest he may be preparing for another unconventional investment strategy—one that could shake the market yet again.

#Business News