Michael Burry Shuts Down Scion Hedge Fund in Major SEC Exit

Investor Michael Burry has officially closed his hedge fund, Scion Asset Management. The firm deregistered with the Securities and Exchange Commission this week. This move marks a significant retreat from public markets for the famous “Big Short” investor.

The decision suggests Burry is shifting his investment strategy entirely. He may now operate as a private family office. This would free him from public disclosure rules and outside investor pressures.

From Public Fund to Private Office

Deregistering with the SEC is a formal process. It effectively ends Scion’s status as a regulated investment adviser for outside clients. This step was confirmed by a review of regulatory filings.

Operating as a family office would allow Burry to manage primarily his own wealth. He would no longer need to publicly report his stock positions each quarter. This grants him greater privacy for his future investment moves.

Clarifying the Palantir Short Position

News of the fund’s closure comes amid focus on Burry’s market bets. He recently clarified a major short position against Palantir Technologies. Initial reports had dramatically overstated the size of his bet.

Burry explained his actual risk is around $9.2 million. This is far less than the $912 million figure that circulated. His position involves options that expire in early 2027.

He also held put options on Nvidia shares. This indicates a broader skepticism toward high-flying technology and AI stocks. According to Reuters, Burry has been critical of tech sector accounting practices.

A Legacy of Contrarian Moves

Michael Burry rose to fame by predicting the 2008 housing market collapse. His story was chronicled in the book and film “The Big Short.” Since then, his market predictions are closely watched.

He has a history of making contrarian, often bearish, bets. His recent criticism targets what he sees as an AI investment bubble. The closure of his fund is his most consequential personal move in years.

Michael Burry’s decision to shut down Scion Asset Management signals a major shift for the iconic investor. His exit from the public hedge fund structure allows him to trade away from the spotlight. This move underscores his enduring contrarian nature and skepticism toward current market valuations.

Info at your fingertips

Why did Michael Burry close Scion Asset Management?

He deregistered the fund with the SEC. This likely means he is converting it to a private family office to manage his own wealth without public reporting requirements.

What is Michael Burry’s short position on Palantir?

It is a options-based position worth about $9.2 million, not $912 million. The options give him the right to sell Palantir shares at $50 each in 2027.

Is Michael Burry still investing?

Yes. Closing the public fund does not mean he stopped investing. He will likely continue his strategy, just without the obligation to disclose his trades to the public.

What is a family office in finance?

A family office is a private wealth management firm. It handles the investments and financial affairs for a single, ultra-high-net-worth family.

What other stocks has Michael Burry bet against?

Recent filings showed he also held put options on Nvidia. This aligns with his publicly stated skepticism about the sustainability of tech and AI stock valuations.

Trusted Sources

U.S. Securities and Exchange Commission (SEC), Reuters, Associated Press

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