Michael Burry Pulls the Plug on Scion – New Venture Drops November 25
The Big Short legend just liquidated his hedge fund. Again.
Markets brace as Burry's next move looms—12 days to liftoff.
What's the play? Shorting Wall Street's hubris or betting against the Fed? The man who foresaw 2008 isn't talking. Yet.
One thing's certain: When Burry moves, sharks circle. And retail traders get leftovers.
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According to filings, Burry submitted the deregistration request on October 27, and it took effect on November 10. It’s no surprise then that Burry had to abruptly disclose his fund’s portfolio holdings, revealing bearish bets against AI darlings Palantir Technologies (PLTR) and Nvidia (NVDA), which sent ripples through the market.
Burry’s Letter to Investors
In a letter to investors, dated October 27, Burry wrote, “With a heavy heart, I will liquidate the funds and return capital… by year’s end.”
Under SEC rules, funds managing over $100 million in assets must report their holdings within 45 days of the quarter’s end. Scion, however, filed its third-quarter report on November 3, earlier than required, as it prepared to close. That final filing revealed big negative bets and sparked a wave of news coverage.
Burry’s Recent Escapades
Lately, Burry has been back in the spotlight after returning from a two-year hiatus. He recently warned of a market “bubble” without specifying which sector he believes is overvalued.
Next, Scion’s filings showed put options on 5 million Palantir shares and 1 million Nvidia shares, reportedly valued at $1.1 billion. Following the disclosure, NVDA and PLTR stocks experienced significant share price drops. However, Burry later clarified on X that his real bet on Palantir was only about $9.2 million, around one-hundredth of the reported amount, since each put option represents 100 shares.
Finally, Burry raised concerns over a $176 billion depreciation gap in AI hardware among tech giants. He argued that flawed accounting could cause firms like Oracle (ORCL) and Meta (META) to overstate their earnings by 26.9% and 20.8%, respectively, by 2028.
Burry has followed a similar path before. In 2008, he closed his earlier firm, Scion Capital, only to return five years later with Scion Asset Management in 2013. His latest move suggests another strategic reset, hinting that Burry may once again be preparing for a new chapter in his investing career.
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