Michael Burry Shuts Down Scion Asset Management, Citing AI “Bubble” Concerns

Investor Michael Burry has officially closed his hedge fund, Scion Asset Management. The move was confirmed on November 10, 2025. This action ends the fund’s requirement to file public disclosures with regulators. Burry is famous for his successful bet against the U.S. housing market before the 2008 crisis.

His decision removes Scion from the scrutiny of the Securities and Exchange Commission. According to a recent filing, the fund managed approximately $155 million in assets as of March. This step signals a major retreat from managing external investor money.

Michael Burry Scion Deregistration Ends an Era

Burry publicly announced the termination on his social media account. He shared a screenshot showing Scion’s deregistered status. This formalizes the fund’s shutdown.

The investor had hinted at this move just weeks prior. In a post, he suggested that sometimes the best move is not to play at all. This philosophy appears to have guided his final decision.

According to Reuters, this action reflects a belief that the current market environment has fundamentally changed. Burry has expressed that his value-based investment strategy is out of sync with today’s markets. He is stepping back from the traditional hedge fund model.

Burry’s Stance on the AI Market Bubble

Burry has been vocal about his concerns regarding the artificial intelligence sector. He has repeatedly compared the current AI investment frenzy to the dot-com bubble. His recent investment moves back up this pessimistic view.

He recently disclosed significant put-option bets against major AI-focused companies. These included positions against chipmaker Nvidia and data analytics firm Palantir. A put option is a bet that a stock’s price will fall.

According to Business Insider, Burry detailed spending $9.2 million on put options for Palantir stock. This is a direct wager against the sustainability of its current valuation. His actions suggest he sees a major market correction ahead for tech.

This decisive move by Michael Burry to shutter Scion Asset Management sends a powerful warning to Wall Street. His exit underscores deep-seated concerns over market speculation and the AI investment boom. The financial world will be watching his next move closely.

Thought you’d like to know

Who is Michael Burry?

Michael Burry is a hedge fund manager and physician. He gained fame for his successful bet against the subprime mortgage market before the 2008 financial crisis. His story was featured in the book and film “The Big Short”.

What does deregistering a hedge fund mean?

Deregistering means the fund is no longer required to file public reports with the SEC. It effectively takes the fund’s operations and holdings private. This limits the public’s insight into its activities.

How much money did Scion Asset Management manage?

As of its last public filing in March 2025, Scion managed approximately $155 million. This capital was spread across just four client accounts. The fund was relatively small compared to industry giants.

Why is Burry concerned about AI stocks?

Burry believes the rapid rise in AI company valuations mirrors past speculative bubbles. He thinks market enthusiasm has detached stock prices from their underlying business value. His put options on companies like Nvidia are a direct bet on this view.

Has Burry done this before?

Yes, this is not his first major fund closure. He famously shut down his original fund, Scion Capital, in 2008. He later launched Scion Asset Management in 2013 before now closing it.