'Big Short' Fame Michael Burry's Hedge Funds Exit Sparks Concerns Of Another 'Market Crash'; Who Is He?

Ace investor Michael Burry, who is known to predict the 2008 stock market crash, has sparked concerns with his latest move. The ace investor, who was also mentioned in the movie 'Big Short', is reportedly closing his hedge fund 'Scion Asset Management'.

The California-born hedge fund manager informed his company investors in a letter, dated October 27, that he would liquidate the funds and return the capital, reported news agency Reuters on Thursday.

While there is no clear official confirmation about Scion Asset Management's closure till now, a person directly familiar with the matter confirmed the development to Reuters.

"My estimation of value in securities is not now, and has not been for some time, in sync with the markets," Burry said in the letter.

Another Market Crash Coming?

Many reports suggest that Burry's exit from the market is a signal that he is preparing for the upcoming market volatility. However, many argue that his recent move is not a permanent exit but a small pause.

"Burry's decision feels less like 'calling it quits' and more like stepping away from a game he believes is fundamentally rigged," Reuters quoted Bruno Schneller, managing director at Erlen Capital Management.

About Scion Management

Scion Asset Management is a private firm founded by Michael J Burry. Deregistration of Scion Asset Management would mean that the fund is not required to file reports with the regulator or any state. SAM manages nearly $155 million assets, as of March 2025.

Burry's Criticism Of AI Enthusiasm Led Investment

Few days ago, Burry had disapproved of ballooning valuations of firms linked to artificial intelligence.

"Massively ramping capex through purchase of Nvidia chips/servers on a 2-3 yr product cycle should not result in the extension of useful lives of compute equipment. Yet this is exactly what all the hyperscalers have done. By my estimates, they will understate depreciation by $176 billion 2026-2028," stated Michael Burry in a post on X, mentioning big firms like Oracle, META, Google, Microsoft and Amazon.

Something Big Coming On November 25!

As Burry's deregistration of his hedge funds firm has created enough doubts in investors minds, he has hinted of bringing something "big on November 25".

Burry recently changed his X profile bio which now reads, "The Big Short" Michael Burry, M.D., dubbed "Cassandra" by Warren Buffett. Now unchained -??? launches Nov 25th, Stay Tuned!"

Burry's profile on X, titled "Cassandra Unchained," is seen as a nod to the Greek mythological figure cursed by Apollo to deliver true prophecies that no one would believe.

Who Is Michael Burry?

Michael James Burry is both an American investor who founded the hedge fund Scion Capital in 2000, as well as a physician who specializes in neurology.

Michael James Burry is a physician turned ace investor. He founded the hedge fund Scion Capital in 2000. In 2008, he founded Scion Asset Management LLC.

How Michael Burry Predicted 2008 Market Crash?

Michael Burry used to manage a hedge fund called Scion Capital in early 2000. In 2008, Burry closed Scion Capital. He also used all his personal investment to bet against the US housing market in 2007 to buy credit default swaps (CDS) on mortgage bonds. These were similar to insurance policies that would pay him if the bonds collapsed.

Burry bought credit default swaps (CDS) to bet against specific subprime mortgage bonds and collateralised debt obligations (CDOs) as he predicted that they would crash. CDS were to insurance policies that would pay him if the bonds collapsed. It helped him to make a personal profit of $100 million in addition to $725 million for his investors.