The stock market is currently navigating a turbulent phase amid concerns about an AI bubble and the Federal Reserve’s hawkish comments.
- Burry has been actively promoting a venture he plans to launch on Nov. 25, without providing any further details.
- Before deregistering, Burry’s Scion Asset Management disclosed massive short positions in Nvidia and Palantor
- He took potshots at hyperscalers for artificially boosting profit by extending the useful life of AI infrastructure assets.
“The Big Short” fame investor Michael Burry, who recently deregistered his hedge fund, Scion Asset Management, with the SEC, hasn’t given up on the market yet. While recent posts on X and his teaser for the launch of a venture on Sept.25 have confirmed that he stayed tuned to the market, the confirmation came via an email to Bloomberg.
Burry emerged from a nearly two-year-long self-imposed social media exile in late October and has been brisk in his engagements since.
Still Active
In an emailed reply to Bloomberg, Burry said, “I am still running my money and active in markets.” He also clarified that Scion Asset Management was virtually a “family-and-friends” fund. “This last go-around was always essentially a friends and family fund,” he said. “I didn’t market it or treat it like most do, and I wasn’t trying to grow assets by acquiring investors I didn’t already know. I didn’t want the problems I had the first go around with Scion Capital.”
Scion Capital, which Burry founded in November 2020, shot to fame when its founder had the prescience to accurately predict the subprime mortgage crisis and the subsequent housing market collapse, and also profited from his bearish bet. He subsequently wound down the fund in 2008 due to public backlash over his schemes and numerous audits from the Internal Revenue Service (IRS). Burry established Scion Asset Management in 2013 as a multi-strategy fund and invested in assets such as equities, derivatives, and fixed income instruments.
Burry Sounds AI Alarm
The second time did not prove to be a charm either, as he deregistered the fund. This came amid Burry’s warnings about reckless investment in cloud, data center, and AI. After a cryptic post on “bubbles” in late October, he warned that hyperscalers were artificially boosting profits by extending the useful life of AI infrastructure assets.
Around the same time, Scion Asset Management disclosed large bearish positions in Nvidia and Palantir. Burry later clarified media reports about his Palantir bet. As recently as this week, he said he is long Molina Healthcare and short Palantir. Following Chinese search engine Baidu’s quarterly results, Burry also accused the company of inflating its profits by extending server lifetimes.
The stock market is currently navigating a turbulent phase amid concerns about an AI bubble and the Federal Reserve’s hawkish comments, which have reduced the odds of a December rate cut. The SPDR S&P 500 ETF (SPY), an exchange-traded fund that tracks the S&P 500 Index, and the Invesco QQQ Trust (QQQ) ETF, which tracks the Nasdaq 100 Index, have still gained 13.6% and 17%, respectively, this year.
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