Renowned Wall Street investor Michael Burry, famously portrayed in The Big Short, has officially closed his hedge fund, Scion Asset Management, marking the second time in his career that he has voluntarily liquidated a fund. Burry cited market distortions and what he describes as an “AI bubble” as the primary reasons for the closure, emphasizing a growing disconnect between asset valuations and underlying fundamentals.
Founded in California, Scion operated for six years and gained prominence for its profit during the 2008 subprime mortgage crisis, as well as its influence in the GameStop short squeeze. In a letter to investors dated October 27, 2025, Burry stated, “My assessment of securities’ intrinsic value has long diverged from market pricing.” This contrarian approach underscores his long-term investment philosophy and skepticism toward speculative market trends.
Burry’s final 13F filing, unusually submitted ahead of schedule, revealed tens of thousands of long-dated put options extending through 2026 and 2027, representing aggressive bearish positions against stocks such as Palantir ($PLTR). Analysts note that these positions reflect Burry’s expectation of a prolonged market correction fueled by excessive liquidity and investor euphoria surrounding artificial intelligence.
The closure of Scion transitions Burry to a family office model, freeing him from quarterly reporting pressures and enabling more autonomous investment strategies. Observers draw parallels between this move and the principles underpinning cryptocurrency adoption: independence from centralized intermediaries and a focus on long-term value rather than short-term gains.
While Burry has not disclosed crypto holdings, his exit from traditional markets resonates with the broader narrative of Bitcoin and other digital assets serving as countercyclical hedges. Investors may interpret his decision as a signal that capital could increasingly flow toward alternative assets amid heightened market volatility.
