Michael Burry Shuts Down Scion Asset Management Amid AI Market Contrarian Stance

This analysis examines Michael Burry’s shutdown of Scion Asset Management, a significant event in the investment community given Burry’s reputation as the “Big Short” investor who correctly predicted the 2008 housing market collapse. The SEC registration termination effective November 10, 2025 [1][2] provides regulatory confirmation of the wind-down, while multiple sources report Burry’s statement that his “valuation approach is out of sync with markets” [1].

The shutdown follows a dramatic portfolio transformation in Q3 2025, where Burry liquidated previous positions and established substantial bearish bets against AI sector leaders. His 13F filing revealed put options on 5 million Palantir shares ($912 million notional value) and 1 million Nvidia shares ($187 million notional value) [1][4]. This contrarian positioning against the market’s most popular momentum stocks coincides with Burry’s return to social media platform X in late October 2025 after a two-year absence [1][3].

Historical context reveals this isn’t Burry’s first fund closure. He previously shut down Scion Capital in 2008 following his successful housing market bet, citing public backlash and IRS audits [2][5]. The current shutdown may represent a transition to a family office structure, which would require less regulatory oversight while allowing continued management of personal investments [1][2].

: Burry’s fund shutdowns appear to coincide with major market inflection points and successful contrarian bets. The 2008 closure followed his housing market triumph, while the current shutdown follows his most aggressive anti-AI positioning to date [2][5]. This suggests Burry uses fund closures as strategic reset points following major market calls.

: The shutdown occurs as AI stock valuations reach unprecedented levels, with Burry’s short positions against Palantir and Nvidia drawing public criticism from Palantir CEO Alex Karp [1][3]. His departure removes a prominent bubble-calling voice precisely when market participants are debating whether AI stocks represent a sustainable technological revolution or speculative excess.

: Burry’s cryptic social media return and November 25 “new venture” teaser in his X bio [1] indicate a calculated communication approach. Unlike his 2008 withdrawal from public markets, Burry appears to be maintaining a public profile while restructuring his investment vehicle, potentially to influence market sentiment regarding his bearish AI thesis.

: The SEC registration termination provides concrete evidence of the wind-down, distinguishing this from mere speculation [1][2]. However, the lack of verified details about capital return timelines and the unverified nature of the supposed shutdown letter highlight information gaps that could affect market interpretation.

: Burry’s announcement could trigger increased volatility in AI stocks, particularly Palantir and Nvidia, as market participants may interpret the shutdown as confirmation of his bearish thesis [1][4]. The removal of his capital from these positions through the wind-down process could create additional selling pressure.

: Unverified reports about capital return timelines and the actual shutdown letter content create uncertainty for investors [1]. The lack of official confirmation regarding whether Burry’s bearish positions have been maintained through the wind-down process adds to market uncertainty.

: For investors concerned about AI valuations, Burry’s shutdown may validate bearish concerns and provide timing signals for risk management [1][6]. His historical track record lends credibility to concerns about AI market bubbles, particularly given his substantial positioning against sector leaders.

: If Burry transitions to a family office structure, this could enable more flexible investment strategies without regulatory constraints [1][2]. Such a structure would allow continued pursuit of his contrarian approach while avoiding public disclosure requirements that may disadvantage his investment strategies.

: SEC registration termination for Scion Asset Management effective November 10, 2025, provides regulatory confirmation of the shutdown [1][2].

: Q3 2025 13F filing showed complete liquidation of Q2 positions and establishment of bearish bets against AI stocks, including $912M Palantir puts and $187M Nvidia puts [1][4].

: Previous Scion Capital shutdown in 2008 followed successful housing market short, suggesting pattern of strategic resets following major contrarian successes [2][5].

: Burry’s X bio hints at November 25, 2025 announcement regarding “new ventures,” though specific details remain unclear [1][3].

: The shutdown removes a prominent contrarian voice from formal money management during ongoing debates about AI stock valuations and potential market bubbles [1][6].

: Actual shutdown letter content unverified, capital return timeline unspecified, and current status of bearish positions through wind-down process unclear [1].