Michael Burry’s Scion Asset Management Ceases SEC Registration
The 'Big Short' investor's firm ends public filings amid his warnings on AI bubble and short positions against Nvidia, Palantir.
Michael Burry’s Scion Asset Management has ceased its registration with the U.S. Securities and Exchange Commission (SEC).
The move, recorded on the SEC’s website, took effect on November 10, Bloomberg reported. Burry, who gained prominence for his successful bet against the U.S. housing market in 2008, indicated his next steps in a social media post. Sharing a screenshot of the registration termination, he wrote, “On November 25, I am moving on to much better things.”
The hedge fund manager has consistently cautioned against excessive market euphoria surrounding Artificial Intelligence. Last month, he posted an image of his character from the film ‘The Big Short,’ accompanied by the warning, “Sometimes we see bubbles.” Such remarks have been widely interpreted as questioning the sustainability of the AI boom, which has propelled Nvidia to become the first company with a market capitalization exceeding $5 trillion.
Scion previously disclosed short positions against Nvidia and Palantir, another stock that has surged due to AI advancements. Investment advisers managing over $100 million in assets are typically required to register with the SEC. This de-registration suggests Burry has either closed his hedge fund or made it inaccessible to external investors.
A report from May indicated the firm managed approximately $155 million in assets under management (AUM). Burry had previously closed his firm, Scion Capital, in 2008. From 2005, he successfully pressured Wall Street investment banks to create credit-default swaps for bets against bonds backed by the riskiest mortgage loans.
That strategy paid off as borrowers began defaulting, allowing his investors to more than quintuple their capital between 2000 and 2008. Burry’s social media post regarding Scion’s SEC status also detailed his bet against Palantir, noting he spent about $9.2 million on options allowing him to sell the company’s shares “at $50 in 2027.”
During the first quarter, Scion reported liquidating nearly its entire portfolio of listed stocks and acquiring put options on Nvidia shares, as well as on several U.S.-listed Chinese technology giants. Palantir CEO Alex Karp previously criticized Burry’s bet, labeling it “insane.”
