Is Michael Burry Shutting His Fund Just Before He’s About to Be Proved Right?

3 days ago 6

Rich Duprey

Tue, November 18, 2025 astatine 9:58 AM CST 4 min read

Michael Burry’s Scion Asset Management targeted AI valuations detached from fundamentals by taking monolithic enactment options connected Nvidia (NVDA) and Palantir Technologies (PLTR).
However, Burry conscionable closed his hedge money and returned superior aft his valuation views diverged from markets for an extended period.
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Michael Burry, the capitalist immortalized successful "The Big Short" for predicting the 2008 lodging crash, precocious sent shockwaves done markets again. In his third-quarter filings, his Scion Asset Management revealed monolithic enactment options against Nvidia (NASDAQ:NVDA) and Palantir Technologies (NASDAQ:PLTR), signaling heavy skepticism astir artificial quality (AI)-driven valuations detached from fundamentals. These bets positioned him to nett if high-flying AI stocks corrected sharply.

Then came a astonishing reversal -- not by covering his abbreviated positions oregon embracing the AI narrative, but by deregistering Scion Asset Management with the SEC, efficaciously closing the hedge money and returning extracurricular superior to investors by year-end. In a missive to his investors, Burry explained his valuation views person been retired of sync with markets for immoderate time, implying it was unwise to negociate others' wealth amid specified divergence. This echoes his 2008 closure of Scion Capital, erstwhile lawsuit unit mounted earlier his lodging stake paid off.

Far from capitulation, the determination suggests Burry remains convinced AI hype has created a bubble. By shifting to a apt household bureau structure, helium frees himself to prosecute contrarian trades privately, utilizing his ain superior without risking investors' funds oregon facing redemption demands.

Yet the question arises: is Michael Burry closing store conscionable earlier he's proved close -- again?

The AI roar has triggered melodramatic reratings crossed tech, with stocks trading astatine utmost multiples justified lone by flawless execution and endless growth. Nvidia, the pick-and-shovel play for AI infrastructure, has seen its marketplace headdress detonate arsenic request for its chips surges. Palantir, with its information analytics platforms, has ridden authorities and endeavor AI adoption to caller highs.

Other examples abound: Super Micro Computer (NASDAQ:SMCI) has skyrocketed connected server request for AI training, portion Arm Holdings (NASDAQ:ARM) benefits from businesslike spot designs powering AI devices. Even broader names similar Microsoft (NASDAQ:MSFT) and Broadcom (NASDAQ:AVGO) commercialized astatine premiums tied to AI unreality and semiconductor exposure.