Michael Burry “Big Short” investor has reportedly closed his firm Scion Asset Management

Michael Burry Calls Time on Scion

Earlier today, early posts on X began circulating a letter purportedly sent from Michael Burry to Scion investors, stating that he planned to wind down the fund. The Financial Times later confirmed the closure, citing two people who had direct knowledge of Burry’s note. What stood out was the timing. Scion had reportedly placed close to eighty percent of its capital into positions against Nvidia (NASDAQ: NVDA) and Palantir (NYSE: PLTR), two of the most aggressively bid names in the US market.

In the letter, Burry wrote that he would liquidate the funds and return capital by year end, apart from a small audit and tax holdback. He added that his estimation of value in securities had not been in sync with markets for some time.

It is a rare moment to see one of the most contrarian investors of the past two decades openly concede that the current market psychology simply did not align with his framework. Whether investors agree with his calls or not, the announcement captures a broader tension in this market cycle. Momentum continues to overpower traditional valuation markers, especially in mega cap AI. When someone like Burry steps back at this exact point in the cycle, it forces you to pause and consider how stretched sentiment might be beneath the surface.

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Michael Burry Warning Shows Why Timing the Market Still Traps Even the Best

It is important to recognise that no matter how experienced or well read you are in the markets, trying to perfectly time entries and exits is still one of the fastest ways to lose money. Even someone with Michael Burry’s reputation has had as many missteps as successful calls, which is why investors should be cautious when trying to mirror these strategies.

Burry recently adopted a bearish stance toward several AI favourites and signalled a broader warning about the enthusiasm that has powered the market over the past year. It is a reminder that even high profile investors can diverge sharply from prevailing sentiment and still be wrong in the short term.

Most people first learned Burry’s name from his famous position against the US housing market in 2008, a trade that generated approximately US$800 million. That moment cemented his status, but it did not make him infallible. The takeaway here for investors is simple. Respect the insight, understand the logic, but never outsource conviction. Markets reward consistency and discipline far more than they reward attempts at perfect timing.