Michael Burry terminates hedge fund Scion's registration status — Here's what SEC filings show

US-based hedge fund Scion Asset Management's founder, Michael Burry, on Monday, 10 November 2025, terminated the registration status of the investment giant, according to the official data collected from the Securities and Exchange Commission (SEC) website.

Michael Burry's popularity in the US markets rose after the hedge fund portfolio manager bet against the US housing market in 2008 using a financial instrument like credit default swaps (CDS). Burry's bet paid off big as America's housing market crashed due to the subprime mortgage crisis; he held the insurance against those bonds, which made him $100 million in 2008.

What did Michael Burry say?

Scion founder Michael Burry said that his estimation of value in the equities has not been in sync with the equity markets, highlighting the reason for closing his fund and the de-registration move. A social media post from Barchart showed that Michael Burry wrote the letter to his investors on 27 October 2025.

Michael Burry, in his letter, said that he will be returning investors their money back to them by the end of 2025 due to a tax holdback.

“With a heavy heart, I will liquidate the funds and return capital - but for a small audit/tax holdback - by year's end,” said Michael Burry in an official letter to his investors. “With heartfelt thanks, but also with apologies. I wish you well in your future investments,” he said.

Burry's take on frauds of the modern era

In a social media post on 10 November 2025, Michael Burry highlighted how extending the useful life of assets in an artificial way can boost the company's earnings. He called this move ‘one of the more common frauds of the modern era.’

Burry, in his take on big tech companies buying semiconductor chips or servers from Nvidia, said that these equipments with a two to three-year product cycle, should not result in the extension of useful lives of computing equipment.

“Yet this is exactly what all the hyperscalers have done. By my estimates they will understate depreciation by $176 billion 2026-2028,” said Burry in his post on X. “By 2028, ORCL will overstate earnings 26.9%, META by 20.8%, etc. But it gets worse. More detail coming November 25th. Stay tuned.”

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