Legendary investor Michael Burry, acclaimed for predicting the 2008 financial crisis and immortalized in “The Big Short,” has officially shuttered his hedge fund, Scion Asset Management. This move ends a notable chapter in value investing, sparking speculation across financial circles about the motivations behind his decision and what lies ahead.
Scion Asset Management: An Era Ends
Regulatory filings as of November 2025 confirm Scion’s deregistration with the U.S. Securities and Exchange Commission, ending its status as a registered investment adviser. At its peak, the fund managed about $154 million in assets, and Burry’s social media revealed his intention to liquidate holdings and return investor capital before year’s end. The decision was communicated through a heartfelt letter, reflecting both gratitude and apology, and acknowledging that his “estimation of value in securities is not now, and has not been for some time, in sync with the markets”.
Disillusionment with Market Valuations
Burry’s exit is rooted in growing skepticism about current market dynamics, particularly within the technology and artificial intelligence sectors. He has frequently voiced concerns about inflated valuations, accusing major tech giants of accounting practices that obscure the true profitability of their AI investments. Burry describes today’s market as an “illusion of endless growth,” warning that speculative enthusiasm has overtaken economic fundamentals.
Dramatic Moves Against AI Giants
Coinciding with Scion’s closure, Burry disclosed bearish positions against leading AI stocks, notably Nvidia and Palantir. This contrarian play underscores his conviction that the sector is in the midst of a speculative bubble, with hype driving valuations far above intrinsic worth. The closure of Scion, therefore, is less about withdrawal than a principled stand—an assertion that disciplined value investing is incompatible with today’s overconfident, bubble-prone market.
Echoes of 2008: Historical Parallels
This latest move from Burry bears a striking resemblance to his 2008 exit, when he closed Scion Capital after profiting from his infamous bet against the housing market. He invested heavily in credit default swaps—a bold wager that paid off as the subprime mortgage crisis unfolded. His reputation as a financial contrarian was solidified, and his actions again seem to reflect cautious conviction before a possible inflection point in financial markets.
Investor Reaction and Wider Market Sentiment
Wall Street has taken note, viewing Burry’s fund closure as a possible early warning of increased market volatility. Some analysts argue that Burry’s disenchantment signals underlying risks and a possible correction, especially in segments fueled by rampant speculation. While some believe his withdrawal is temporary, others see it as a barometer of deeper structural changes ahead.
What’s Next for Michael Burry?
Although Burry hasn’t issued a formal public statement about his future, his social media hints at “much better things” beyond Scion. Speculation suggests he may explore private investments, less regulated ventures, or alternative asset strategies. Despite stepping away from fund management, Burry’s contrarian instincts and commitment to principle remain, ensuring his next chapter will be closely watched by investors and analysts alike.
Legacy of Integrity
Burry’s move reflects a steadfast devotion to value-based investing, even when it means stepping away from markets that no longer align with his philosophy. His decision to return capital and advocate caution underscores his reputation as a principled contrarian—someone willing to act against prevailing sentiment when warranted by market conditions.
Conclusion
Michael Burry’s closure of Scion Asset Management is both an end and a potential new beginning. Driven by disappointment in speculative market dynamics, his exit signals a call for renewed discipline and integrity in investing. As he hints at entering a new chapter, market watchers and fellow investors will be paying close attention, seeking insights from one of finance’s most unconventional minds.