'Big Short' investor Michael Burry shuts down his hedge fund
What's the story
Michael Burry, the Wall Street legend who shot to fame for his 2008 bet against the US housing market, is shutting down his hedge fund. His firm, Scion Asset Management, deregistered with the US Securities and Exchange Commission (SEC) on November 10. The move marks another significant decision in Burry's career, known for bold predictions and navigating financial crises.
Career trajectory
Burry's journey from 'Big Short' to Scion Asset Management
Burry's prediction of the 2008 financial crisis as early as 2007, using credit default swaps (CDS), earned him global recognition. He made $100 million from his bets in 2008 when the broader market collapsed due to the subprime mortgage crisis. His story was later adapted into a bestselling book and a Hollywood film titled The Big Short, which further cemented his status as a financial oracle.
Market warnings
Return to finance and recent predictions
After a brief hiatus following his 'Big Short' prediction, Burry returned to the financial markets in 2013 with Scion Asset Management. He has since made several bold calls, including a warning about an "index bubble" similar to the 2008 subprime collateralized debt obligations (CDOs) boom. In late 2020, he sold his entire stake in GameStop, the meme stock that skyrocketed in early 2021.
Investment strategy
Burry's bets against Tesla and AI concerns
In May 2021, Burry's firm took put-option positions against Tesla, a move he justified by saying the automaker's valuations didn't match its fundamentals. More recently, in 2025, he has warned about an "inflation" caused by AI and tech companies. Just last week, he called bearish stances on Wall Street favorites NVIDIA and Palantir Technologies Inc, saying that AI has fueled this year's market rally.
Criticism and anticipation
Burry's critique of tech companies and future plans
Burry has criticized Big Tech companies for artificially extending the useful life of assets to boost their earnings, calling it "one of the more common frauds of the modern era." He specifically mentioned Oracle and Meta in his critique. Notably, he revealed details about his bet against Palantir Technologies, saying he spent around $9.2 million on options allowing him to sell its shares "at $50 in 2027."