Michael Burry, the contrarian investor immortalized in The Big Short, has closed the chapter on managing money for external clients. On Monday, regulatory filings confirmed that Scion Asset Management—Burry’s hedge fund—was deregistered with the U.S. Securities and Exchange Commission.
The fund had managed roughly $155 million across four accounts as of late March, according to its most recent Form ADV filing. The move marks a return to a model Burry has used before: focusing solely on personal capital while shedding the pressures of managing client money.
Burry himself posted the development on X, sharing a screenshot of Scion’s terminated status on Wednesday evening. He had foreshadowed the change in a post on October 30, his first since April 2023. In it, he reflected on the nature of market cycles, writing: “Sometimes, we see bubbles. Sometimes, there is something to do about it. Sometimes, the only winning move is not to play.”
The timing coincides with a period of heightened market volatility and speculation, particularly in the artificial intelligence sector. Burry drew attention in October when Scion’s third-quarter portfolio update revealed bearish put options on Nvidia and Palantir, two leading AI-focused companies. The disclosure prompted a public exchange with Palantir CEO Alex Karp, who called the positions “batshit crazy.” Burry responded on X that he was unsurprised Karp “cannot crack a simple 13F,” referencing the regulatory filing that details major institutional holdings.
Burry also addressed misreported figures around the Palantir trades. Media outlets had suggested he had bet $912 million against the stock, but he clarified that he purchased 50,000 put option contracts, each covering 100 shares, at a premium of $1.84 per share, totaling $9.2 million.
“That was done last month,” he wrote. “On to much better things Nov 25th.” His X bio now reads: “Official X account for ‘The Big Short’ Michael Burry, M.D., dubbed ‘Cassandra’ by Warren Buffett. Now unchained -??? launches Nov 25th, Stay Tuned!”
Following a Familiar Pattern
Burry’s exit from managing external capital mirrors past moves by prominent investors seeking autonomy. After profiting from the 2008 housing market collapse, he closed Scion Capital, relaunching it in 2013 as Scion Asset Management with a much smaller set of clients. Freed from investor pressures, he was able to make contrarian bets without answering to demanding clients.
Other high-profile investors have taken similar paths. John Paulson, who also profited from the housing bubble, converted his hedge fund into a family office in 2020. Billionaires David Tepper and Stanley Druckenmiller returned client capital years ago but continue to exert significant market influence. Leon Cooperman did the same in 2018. The late Julian Robertson, founder of Tiger Management, arguably grew even more influential after returning outside money, mentoring a generation of hedge fund managers known as the Tiger Cubs, including Chase Coleman, Andreas Halvorsen, and Philippe Laffont.
Returning external funds allows these investors to focus solely on strategy and market positioning without obligations to write quarterly letters or explain every move to clients. Burry’s social-media activity suggests he plans to embrace this freedom fully, potentially pursuing positions that are more aggressive or unconventional.
Contrarian Moves in AI and Tech Markets
Burry’s recent positions underscore his contrarian approach to AI speculation, likening the current AI investment boom to the dot-com bubble of the late 1990s. The S&P 500 and Nasdaq 100 recently hit record highs, and Burry’s short positions on Nvidia and Palantir reflect skepticism about valuations in a sector experiencing frenzied investor attention.
While Scion Asset Management will no longer accept client money, Burry remains a significant market participant. His “unchained” status may allow him to act and speak more freely, leveraging both his market insight and public platform. Investors and analysts are now looking closely at what Burry will do next, with his moves potentially influencing sentiment in high-flying sectors like technology and AI.
What Comes Next?
Although Burry is returning client capital, his history suggests this is not a retreat from markets but a strategic pivot. In 2008, his bets against the housing bubble made him a legend. Today, he appears poised to take similarly contrarian positions, focusing on sectors and strategies without external constraints.
Burry’s narrative also highlights a broader trend on Wall Street, where high-profile investors increasingly prioritize flexibility and independence over managing outside capital, choosing instead to leverage their insight, reputation, and personal capital to navigate complex, rapidly evolving markets.
In Burry’s case, this latest move may mark the beginning of another influential chapter—one in which he can operate without the boundaries imposed by client obligations, all while retaining the public attention and scrutiny that have followed him for nearly two decades.
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