Michael Burry exits Scion, questions tech giants’ accounting as he eyes next move
Michael Burry, the investor immortalized in “The Big Short” for his legendary bet against the US housing market, is shutting down Scion Asset Management and returning capital to investors, according to a letter seen by Reuters.
Burry explained that his “estimation of value in securities is not now, and has not been for some time, in sync with the markets,” and confirmed that the fund will be liquidated by year-end, save for a small audit and tax holdback.
Scion’s deregistration became official on November 10, as per the Securities and Exchange Commission’s database, meaning the fund is no longer required to file regulatory reports.
The firm managed US$155m as of March, and its investment moves have long been scrutinized for signals of market bubbles and shifts, reported by Reuters.
Burry’s rare public appearances and cryptic social media posts have only heightened his mystique, as noted by Business Insider.
His sporadic commentary, often paired with memes or deleted posts, has built a rapt audience among retail investors who see him as a folk hero for profiting off Wall Street’s missteps during the financial crisis.
According to Business Insider, Burry’s contrarian approach and willingness to go against the grain resonate with day traders who view themselves as outsiders seeking overlooked opportunities.
Burry’s latest market stance has been characteristically contrarian.
In recent weeks, he has sharply criticized technology giants such as Nvidia and Palantir Technologies, questioning the sustainability of the cloud infrastructure boom and accusing major players of using aggressive accounting to inflate profits from their hardware investments, according to Reuters.
He disclosed a US$9.2m position in put options on Palantir, a move that allows him to sell shares at US$50 apiece in 2027, despite the stock trading at US$178.29 as of Thursday.
Burry has argued that companies like Microsoft, Google, Oracle, and Meta are pouring billions into AI hardware.
He claims they are quietly extending depreciation schedules, which could understate depreciation by US$176bn between 2026 and 2028.
According to his estimates cited by Reuters, this practice could inflate reported profits across the sector.
Industry observers see Burry’s exit as a strategic retreat rather than a surrender.
“Burry’s decision feels less like ‘calling it quits’ and more like stepping away from a game he believes is fundamentally rigged,” said Bruno Schneller, managing director at Erlen Capital Management, as quoted by Reuters.
Suggested that Burry may simply pivot to managing his own capital in a family-office setup.
Burry’s rare public commentary and unpredictable social media presence have only added to his mystique.
His profile on X, titled “Cassandra Unchained,” nods to the mythological figure cursed to deliver true prophecies that go unheeded, as reported by Reuters.
Burry’s unpredictability has only fuelled speculation about his next move.
In a recent post, he hinted at a new chapter, stating, “On to much better things Nov 25th.”
Business Insider notes that, with Burry, “it’s best to expect the unexpected,” and that his scarcity only adds to his legend among market watchers.
The closure of Scion comes as other high-profile short sellers face mounting challenges.
Hindenburg Research shuttered after a series of high-profile calls, and veteran short seller Jim Chanos has faced pushback for his bearish positions, as reported by Reuters.
Burry’s contrarian approach and willingness to step away from the crowd continue to set him apart in a market dominated by optimism and momentum.
