Michael Burry Shuts Down Hedge Fund

A US investor made famous by The Big Short appears to have closed his hedge fund after making a major bet against artificial intelligence (AI).

Michael Burry, who made his name by correctly predicting the collapse of the US mortgage market, has deregistered his firm, Scion Asset Management, with the US Securities and Exchange Commission (SEC).

Its status was “terminated” this week, removing federal government oversight, documents show. In a post on social media site X, Burry said he was moving “on to much better things Nov 25”.

Burry’s cryptic tweet has sparked speculation that he may be switching to running a family office, where he will invest his own wealth, requiring less oversight from federal bodies.

Burry’s bet against AI

The surprise move comes weeks after Burry made a $1.1bn bet on a decline in the share prices of chipmaker Nvidia and software company Palantir, both seen as bellwethers of the AI boom.

Burry said on X that he had bought contracts allowing him to sell Palantir shares at $50 apiece in 2027. He would make money if the company’s share price fell below that level. Its shares are currently worth $184.