Michael Burry, best known for his role in predicting the 2008 housing market collapse, has officially closed his hedge fund, Scion Asset Management. Burry rose to fame when his contrarian bet against mortgage-backed securities earned massive returns during the financial crisis. To predict the crisis, then, Burry used a financial instrument known as credit default swaps (CDS).
Scion Asset Management deregisters with SEC
Founded in 2013, Scion Asset Management managed more than $150 million in assets at its peak. According to filings with the U.S. Securities and Exchange Commission, the firm’s registration status was marked ‘terminated’ on November 10, 2025. Burry confirmed that the fund will be liquidated and capital returned to investors by year-end.
Mismatch in valuations and fundamentals?
Burry explained that current market valuations are ‘out of sync’ with fundamentals, echoing his long-standing warnings about speculative bubbles. He has repeatedly cautioned against excessive enthusiasm in technology and AI-linked stocks, including Nvidia and Palantir. His decision to shut the hedge fund shows his discomfort with the currently overheated market.
While he has not revealed his next steps, Burry hinted at pursuing ‘better things’ beyond the hedge fund world. On X he changed his bio with a rather cryptic description stating, “Now unchained -??? launches Nov 25th, Stay Tuned!
Known on Wall Street for his wild predictions, Michael Burry’s story was immortalized in The Big Short, where actor Christian Bale portrayed him as the eccentric investor who saw the crash coming.
When the subprime mortgage crisis unfolded, his foresight catapulted him to global recognition, earning $100 million in 2008 through positions that effectively insured against collapsing bonds.