"Michael Burry, the investor immortalized in " The Big Short " for predicting the 2008 housing crash, recently sent shockwaves through markets again. In his third-quarter filings, his Scion Asset Management revealed massive put options against Nvidia ( NASDAQ:NVDA ) and Palantir Technologies ( NASDAQ:PLTR ), signaling deep skepticism about artificial intelligence (AI)-driven valuations detached from fundamentals. These bets positioned him to profit if high-flying AI stocks corrected sharply."
"Then came a surprising reversal - not by covering his short positions or embracing the AI narrative, but by deregistering Scion Asset Management with the SEC, effectively closing the hedge fund and returning outside capital to investors by year-end. In a letter to his investors, Burry explained his valuation views have been out of sync with markets for some time, implying it was unwise to manage others' money amid such divergence."
Michael Burry placed massive put options against Nvidia and Palantir, betting he would profit if high-flying AI stocks corrected sharply. He deregistered Scion Asset Management, closed the hedge fund, and returned outside capital to investors by year-end. Burry explained his valuation views have been out of sync with markets, making it unwise to manage others' money amid such divergence. Shifting to a likely family-office structure frees him to pursue contrarian trades privately with his own capital and avoid redemption pressures. The AI boom has pushed tech valuations to extreme multiples, exemplified by Nvidia, Palantir, Super Micro Computer, and Arm Holdings.
Read at 24/7 Wall St.
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