database<\/a>\u00a0showed Scion\u2019s registration status as \u201cterminated\u201d as of November 10. Deregistering would imply the fund is not required to file reports with the regulator or any state.<\/p>\nBets by Scion, which managed US$155 million in assets as of March, have long been dissected for hints of looming bubbles and signs of market froth.<\/p>\n
In a post on social media platform X on Wednesday, Burry said, \u201cOn to much better things Nov 25th.\u201d Scion Asset Management did not immediately respond to a Reuters request for comment.<\/p>\n
Burry has stepped up criticism of technology heavyweights, including Nvidia\u00a0and Palantir Technologies, in recent weeks, questioning the cloud infrastructure boom and accusing major providers of using aggressive accounting to inflate profits from their massive hardware investments.<\/p>\n
Bearish AI bets<\/p>\n
\u201cBurry\u2019s decision feels less like \u2018calling it quits\u2019 and more like stepping away from a game he believes is fundamentally rigged,\u201d said Bruno Schneller, managing director at Erlen Capital Management.<\/p>\n
Burry has argued that as companies such as Microsoft, Alphabet-owned Google, Oracle\u00a0and Meta\u00a0pour billions into Nvidia chips and servers, they are also quietly stretching out depreciation schedules to make earnings look smoother.<\/p>\n
Between 2026 and 2028, those accounting choices could understate depreciation by about $176 billion, inflating reported profits across the sector, he estimated.<\/p>\n
AI-related stocks have accounted for 75% of the S&P 500 index\u2019s\u00a0returns since November 2022, when OpenAI launched ChatGPT, J.P. Morgan Asset Management wrote in September.<\/p>\n
\u201cDon\u2019t count him out, just expect him to operate off the grid for a while. He may simply pivot to a family-office setup and run his own capital,\u201d said Schneller.<\/p>\n
The investor\u2019s\u00a0short position\u00a0against subprime mortgage securities during the housing market crash was chronicled in Michael Lewis\u2019s book, \u201cThe Big Short,\u201d and its film adaptation.<\/p>\n
His profile on X, titled \u201cCassandra Unchained,\u201d is seen as a nod to the Greek mythological figure cursed by Apollo to deliver true prophecies that no one would believe.<\/p>\n
Investment advisers with assets under management of $100 million or more have to register with the SEC, and are primarily subject to federal regulation instead of state regulation.<\/p>\n
Rough ride for short sellers<\/p>\n
Burry joins a cast of high-profile investors navigating a market that has become increasingly hostile to bearish views in recent years, thanks to unfettered optimism around technology and strong interest from retail investors.<\/p>\n
Hindenburg Research\u00a0shuttered\u00a0earlier this year after a string of high-profile calls, including bets against India\u2019s Adani Group and U.S. electric-truck maker Nikola.<\/p>\n
Veteran short seller Jim Chanos, best known for his bets against energy trader Enron months before the company\u2019s bankruptcy, has also\u00a0sparred\u00a0with Michael Saylor\u2019s bitcoin holding company Strategy.<\/p>\n
Chanos has argued that Strategy\u2019s valuation premium was unjustified, a critique that drew a sharp response from Saylor.<\/p>\n
Reporting by Niket Nishant and Johann M Cherian in Bengaluru and Nell Mackenzie in London; Additional reporting by Aditya Soni and Manya Saini in Bengaluru; Editing by Anil D\u2019Silva, Reuters<\/p>\n","protected":false},"excerpt":{"rendered":"\u201cBig Short\u201d investor Michael Burry, known for his successful bets against the U.S. housing market in 2008, has…\n","protected":false},"author":2,"featured_media":280699,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[712,45,49,48],"class_list":{"0":"post-280698","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-apple-news","9":"tag-business","10":"tag-ca","11":"tag-canada"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/280698","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=280698"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/280698\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/280699"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=280698"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=280698"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=280698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}