Michael Burry of “The Big Short” shutters hedge fund, says the market makes no sense to him anymore
Investor says equities have diverged from intrinsic value amid AI mania
What just happened? Michael Burry is winding down his hedge fund, Scion Asset Management, after warning that US equity markets no longer reflect underlying economic value. The investor, whose prescient bet against mortgage-backed securities before the 2008 financial crisis was immortalized in the movie ‘The Big Short’, told clients that he plans to liquidate the fund and return investor capital by the end of the year, apart from a small reserve for audit and tax obligations.
As 2025 draws to a close, Michael Burry’s exit reads less as capitulation than as a confirmation of his conviction: when prices move too far from fundamentals, even the most disciplined investors eventually step aside.
