Big Short’ Investor Michael Burry Deregisters Scion Fund, SEC Filing Reveals

• Michael Burry has deregistered Scion Asset Management with the SEC effective November 10, potentially signaling a shutdown or closure to outside investors, given its $155 million in assets under management.
• Burry’s move coincides with his bearish bets against AI leaders like Nvidia (NVDA) and Palantir (PLTR), including $9.2 million in put options on Palantir expiring in 2027 at a $50 strike price, amid warnings of market bubbles.
• Echoing his 2008 subprime success chronicled in “The Big Short,” Burry’s history of contrarian strategies and recent social media hints at “much better things” by November 25 suggest a strategic pivot away from institutional constraints.

Michael Burry, the contrarian investor whose prescient call on the subprime mortgage crisis in 2008 earned him legendary status, has taken a decisive step away from regulatory oversight by terminating Scion Asset Management‘s registration with the U.S. Securities and Exchange Commission. This move, effective November 10 as detailed in a recent SEC filing, signals a potential pivot for the firm, which managed approximately $155 million in assets under management as of its March disclosure. For advisers overseeing more than $100 million, SEC registration is typically mandatory, making this deregistration a clear indication that Burry may be winding down operations or restricting the fund exclusively to personal or select capital, much like his earlier ventures.

Burry’s decision arrives amid his vocal skepticism toward the frothy valuations driving the artificial intelligence sector, where enthusiasm has propelled Nvidia Corp. (NVDA) to become the first company to surpass $5 trillion in market capitalization. In a social media post accompanying the screenshot of Scion’s terminated status, Burry hinted at forthcoming developments, stating he was “on to much better things Nov 25th.” This cryptic remark follows a pattern of pointed commentary from the investor, including a recent image of his “The Big Short” character paired with a caution that “sometimes, we see bubbles.” Such warnings have fueled speculation that Burry views the AI surge as an unsustainable mania, echoing his historical aversion to market euphoria.

Scion’s third-quarter filings underscore this bearish tilt, revealing short positions against Nvidia and Palantir Technologies Inc. (PLTR), both emblematic of AI-driven gains. The fund’s wager on Palantir stands out for its precision: Burry disclosed spending about $9.2 million on put options allowing the sale of shares at $50 in 2027, a strike price that anticipates a significant pullback from current levels. Earlier in the year, Scion liquidated nearly its entire listed equity portfolio, redirecting capital into put options on Nvidia alongside a select group of U.S.-listed Chinese technology firms. These maneuvers reflect Burry’s value-oriented discipline, honed through decades of dissecting balance sheets and spotting asymmetries in overvalued assets – a methodology that traces back to his medical training in neurology, where pattern recognition in complex systems proved transferable to financial markets.

The firm’s history amplifies the intrigue of this deregistration. Burry founded Scion Asset Management in 2013 after closing its predecessor, Scion Capital, in 2008. That earlier entity delivered extraordinary returns, more than quintupling investor capital from 2000 to 2008 by leveraging credit-default swaps to short bonds backed by high-risk home loans – a trade that exposed systemic vulnerabilities in the housing market and inspired Michael Lewis’s seminal account in “The Big Short.” Burry’s success there stemmed not from timing the market’s peak but from a rigorous, contrarian analysis that Wall Street initially dismissed, much as his current AI critiques challenge the consensus narrative of boundless innovation.

Recent posts from Burry further illuminate his concerns, including a Bloomberg News graphic highlighting circular financing risks around Nvidia and similar firms, where supplier and customer interdependencies inflate perceived growth. These disclosures come as Scion did not respond to inquiries, leaving observers to parse the implications. Deregistration could free Burry to pursue higher-conviction, less constrained strategies outside the glare of quarterly filings, potentially amplifying his influence through personal channels rather than institutional mandates. In an era where AI hype dominates headlines, Burry’s retreat from formal structures reaffirms his role as a sentinel against complacency, reminding investors that true alpha often emerges from the willingness to bet against the crowd.

h/t Bberg

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