Michael Burry Ditches Hedge Fund: A Warning Sign for AI-Driven Market Bubbles?

Image Source: Internet

In a surprise move, renowned investor Michael Burry has deregistered his hedge fund Scion Asset Management, effective November 10, 2025. This decision, which means the fund no longer needs to file public disclosures with the SEC, has sparked concerns about the state of the market. According to recent filings, Scion managed around $155 million for four accounts as of March 2025. Burry, famous for his bold bet against the US housing market in 2008, has been vocal about his concerns regarding the current surge in AI-linked tech valuations. In a recent social media post, he hinted that the market may be experiencing a speculative bubble, likening it to the dot-com boom. He has also disclosed put-option bets on AI-heavy companies such as Nvidia and Palantir. The decision to deregister Scion Asset Management mirrors Burry's 2008 move when he closed his previous fund, Scion Capital. Some speculate that this step may indicate a shift in market dynamics that makes traditional hedge fund strategies less reliable. Burry's career, which began as a medical doctor, has been marked by his success in shorting the US subprime mortgage market before the 2007-2008 financial crisis. He launched Scion Asset Management in 2013 after closing his previous fund. Burry's recent pivot has raised questions about the sustainability of current market valuations. As the S&P 500 and Nasdaq 100 reach record highs, investors are left wondering if the AI boom is a sign of a market bubble. With Burry's decision to step away from managing external investor capital, the market is left to ponder the implications of his move.