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Michael Burry Clarifies Scion Asset Management Isn't Closing, Just Ditching Outside Investors

MarketDash Editorial Team
19 days ago
The "Big Short" investor says Scion Asset Management is still active in markets after de-registering as a hedge fund, celebrating freedom from regulatory compliance while continuing to manage investments for friends and family.

Michael Burry, the investor who famously called the 2008 housing crash in "The Big Short," recently caused a stir by de-registering his hedge fund Scion Asset Management. Naturally, everyone assumed he was closing up shop. Not so fast, says Burry.

Still in the Game, Just Less Paperwork

According to a recent report, Burry clarified that he's "not closing" Scion completely and that it remains "active" in markets. The firm will continue as a vehicle to run other investment ventures, just without the regulatory headaches.

Here's the thing: Scion is no longer a Registered Investment Adviser, and Burry sounds downright thrilled about it. He said he was "glad" to be free of the "compliance burden" that comes with being a registered advisor. Anyone who's dealt with financial regulations can probably understand the appeal of that particular exit.

Burry also revealed something interesting about his approach to fund management: he never really promoted Scion or tried to grow it by bringing in more investors. He described it as "essentially a friends and family fund," which explains the low-key vibe.

For context, Scion Asset Management was established in 2013, rising from the ashes of Scion Capital, which Burry closed in 2008 after his legendary bets against mortgage-backed securities during the financial crisis made him both wealthy and famous.

Peanut Butter, Bananas, and Bearish Bets

Just because Burry's no longer filing public disclosures doesn't mean he's going quiet. His last 13F filing revealed massive bearish positions against Palantir Technologies Inc. (PLTR) and Nvidia Corp. (NVDA), and he's doubling down on that thesis.

In a characteristically cryptic X post on Tuesday, Burry reaffirmed his strategy: "Long MOH stock and Long PLTR puts, like peanut butter and bananas." For those decoding Burry-speak, he's betting on Molina Healthcare while simultaneously betting against Palantir, somehow viewing these positions as complementary as a classic sandwich combination.

AI Bubble Warning Bells

On Monday, Burry shared something more ominous on X: a chart plotting "(S&P 500 Total Capital Expenditures Less Depreciation)/Nominal US GDP." This ratio calculates Net Capital Expenditure as a percentage of Nominal U.S. GDP, and it tends to spike during bubbles.

The chart showed that the current investment surge, driven by artificial intelligence hype, actually exceeds the peaks of both the 2000 "DotCom & TMT Boom" and the 2007 "Housing Bubble." If you're familiar with Burry's track record, this comparison should make you at least slightly nervous about the AI investment frenzy.

Both posts make one thing clear: while Burry has officially escaped mandatory public scrutiny of his portfolio, he's not done sharing his contrarian views with the world. He's just doing it on his own terms now, free from quarterly filing requirements.

Meanwhile, the futures of the S&P 500, Nasdaq 100, and Dow Jones indices were trading lower on Wednesday, following a second consecutive day of losses on Tuesday.

Back to News

Michael Burry Clarifies Scion Asset Management Isn't Closing, Just Ditching Outside Investors

MarketDash Editorial Team
19 days ago
The "Big Short" investor says Scion Asset Management is still active in markets after de-registering as a hedge fund, celebrating freedom from regulatory compliance while continuing to manage investments for friends and family.

Michael Burry, the investor who famously called the 2008 housing crash in "The Big Short," recently caused a stir by de-registering his hedge fund Scion Asset Management. Naturally, everyone assumed he was closing up shop. Not so fast, says Burry.

Still in the Game, Just Less Paperwork

According to a recent report, Burry clarified that he's "not closing" Scion completely and that it remains "active" in markets. The firm will continue as a vehicle to run other investment ventures, just without the regulatory headaches.

Here's the thing: Scion is no longer a Registered Investment Adviser, and Burry sounds downright thrilled about it. He said he was "glad" to be free of the "compliance burden" that comes with being a registered advisor. Anyone who's dealt with financial regulations can probably understand the appeal of that particular exit.

Burry also revealed something interesting about his approach to fund management: he never really promoted Scion or tried to grow it by bringing in more investors. He described it as "essentially a friends and family fund," which explains the low-key vibe.

For context, Scion Asset Management was established in 2013, rising from the ashes of Scion Capital, which Burry closed in 2008 after his legendary bets against mortgage-backed securities during the financial crisis made him both wealthy and famous.

Peanut Butter, Bananas, and Bearish Bets

Just because Burry's no longer filing public disclosures doesn't mean he's going quiet. His last 13F filing revealed massive bearish positions against Palantir Technologies Inc. (PLTR) and Nvidia Corp. (NVDA), and he's doubling down on that thesis.

In a characteristically cryptic X post on Tuesday, Burry reaffirmed his strategy: "Long MOH stock and Long PLTR puts, like peanut butter and bananas." For those decoding Burry-speak, he's betting on Molina Healthcare while simultaneously betting against Palantir, somehow viewing these positions as complementary as a classic sandwich combination.

AI Bubble Warning Bells

On Monday, Burry shared something more ominous on X: a chart plotting "(S&P 500 Total Capital Expenditures Less Depreciation)/Nominal US GDP." This ratio calculates Net Capital Expenditure as a percentage of Nominal U.S. GDP, and it tends to spike during bubbles.

The chart showed that the current investment surge, driven by artificial intelligence hype, actually exceeds the peaks of both the 2000 "DotCom & TMT Boom" and the 2007 "Housing Bubble." If you're familiar with Burry's track record, this comparison should make you at least slightly nervous about the AI investment frenzy.

Both posts make one thing clear: while Burry has officially escaped mandatory public scrutiny of his portfolio, he's not done sharing his contrarian views with the world. He's just doing it on his own terms now, free from quarterly filing requirements.

Meanwhile, the futures of the S&P 500, Nasdaq 100, and Dow Jones indices were trading lower on Wednesday, following a second consecutive day of losses on Tuesday.

    Michael Burry Clarifies Scion Asset Management Isn't Closing, Just Ditching Outside Investors - MarketDash News