Michael Burry’s Scion Fund Deregistered: What This SEC Filing Means for Investors

Michael Burry, the investor known for predicting the 2008 financial crisis, has made headlines again. His firm, Scion Asset Management, recently ended its registration with the Securities and Exchange Commission (SEC). This change was noted in a filing on November 10.

Burry, who gained fame for betting against the housing market, hinted at new ventures in a social media post where he shared a screenshot of the termination. He mentioned he is “on to much better things,” indicating a shift in focus for himself and his firm.

In the past few weeks, Burry has expressed concerns about current market trends, particularly the rapid rise of artificial intelligence stocks. For instance, Nvidia, a major player in the AI sector, recently became the first company to reach a market value of over $5 trillion. This surge has raised eyebrows, and Burry has questioned whether this growth is sustainable. Earlier this month, his firm revealed it was betting against Nvidia and Palantir Technologies, another AI-focused company.

According to the SEC’s guidelines, investment advisers managing over $100 million typically must register, which raises speculation about Burry possibly shutting down or changing the structure of his hedge fund. A March report indicated Scion had around $155 million in assets under management (AUM).

Burry has a history of bold moves. His earlier firm, Scion Capital, was closed in 2008 after he successfully pushed for tools to short risky mortgage bonds. This approach led to significant profits, earning investors over five times their initial investment during that period, a story detailed in Michael Lewis’s book, The Big Short.

Recently, Burry’s strategy includes a hefty $9.2 million bet against Palantir, which involves options that allow him to sell its shares at $50 in 2027. This is part of a broader trend where investors are showing caution towards high-flying tech stocks amidst a backdrop of economic uncertainty.

As market conditions continue to evolve, Burry remains a figure of interest for both seasoned investors and casual observers alike. His predictions and strategies serve as reminders of the complexities of investing, especially in rapidly changing sectors like tech and AI.

For those wanting to dive deeper into the trends surrounding AI and its impacts on financial markets, the Wall Street Journal offers valuable insights on the current landscape.

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Scion Asset Management, Michael Burry, Asset Management, Bloomberg, hedge fund manager, registration status