This blog post details the history, investment philosophy, and recent developments of Michael Burry and his firm, Scion Asset Management. Burry is renowned for his contrarian investment approach and his prophetic bet against the subprime mortgage market, as depicted in “The Big Short.” Recent news highlights Scion’s SEC deregistration and liquidation reports as of November 2025, alongside ongoing interest in its investment performance and portfolio shifts.
The Architect of “The Big Short”: Michael Burry’s Investment Philosophy
Michael Burry reopened Scion Asset Management in 2013, building on his reputation from the 2008 financial crisis.
Burry’s strategy is rooted in value investing, inspired by Benjamin Graham. He seeks assets trading significantly below their intrinsic value, prioritizing a “margin of safety.”
He invests in unpopular or overlooked companies, often described as buying “roadkill” and selling them after they are “polished up.”
Burry meticulously analyzes financial statements and identifies systemic risks, often focusing on long-term perspectives rather than short-term gains.
His prediction of the housing market collapse, using credit default swaps (CDS) against prevailing market sentiment, exemplifies his ability to profit from structural inefficiencies.
From GameStop to Global Holdings: Scion’s Impact on Modern Markets
In 2019, Scion acquired a significant stake in GameStop, advocating for a stock buyback due to its undervalued status and high short interest. This action drew attention to the stock, which was later amplified by retail investors, leading to the GameStop short squeeze phenomenon. Scion had exited its position before the peak.
Scion’s investment portfolio has recently shown increased holdings in major Chinese tech giants like Alibaba Group, JD.com, and Baidu.
These positions are often hedged with put options, indicating a strategic balancing of risk and a keen eye on global economic shifts.
The Shifting Sands of Scion: Bearish Bets and Strategic Exits
Scion Asset Management frequently overhauls its portfolio, reflecting Burry’s fluid and opportunistic strategy.
The firm’s Q3 2025 filings revealed a significant bearish stance, particularly against companies involved in Artificial Intelligence Trends.
Substantial put options were acquired on Palantir Technologies Inc. and NVIDIA Corporation, reflecting skepticism about their valuations.
Alongside bearish wagers, Scion also established tactical long positions, including call options on Pfizer Inc. and Halliburton Co., and equity holdings in Molina Healthcare and Lululemon Athletica.
This intricate mix of long and short positions demonstrates Scion’s flexible positioning and reliance on fundamental research to find mispriced opportunities across various global markets.
The Latest Chapter: Deregistration and the Future of Scion
As of November 2025, Scion Asset Management has reportedly de-registered from the Securities and Exchange Commission (SEC).
A letter to investors dated October 27, 2025, confirmed Burry’s intention to liquidate the funds and return capital by the end of the year.
Burry cited a disconnect between his estimation of securities’ value and the broader markets as the reason for this significant decision.
This move has led to speculation that Scion may transition to operate as a family office, a structure that does not require SEC registration.
The decision underscores Burry’s unwavering commitment to his unique investment strategy and his willingness to step away when market conditions do not align with his value-driven principles.
The Enduring Legacy of Michael Burry’s Scion
Michael Burry’s journey with Scion Asset Management is characterized by intelligence, independence, and a strong belief in fundamental value.
His influence spans foreseeing the 2008 financial crisis, impacting the GameStop saga, and the recent decision to deregister.
Burry consistently demonstrates a profound understanding of markets combined with a fearless contrarian spirit, identifying undervalued assets and systemic risks.
His legacy of rigorous research, contrarian bets, and impressive investment performance will continue to inspire and intrigue.
For investors navigating evolving AI Trends and market volatility, Burry’s career offers a lesson in observing overlooked opportunities and stepping back when market conditions diverge from core convictions. The story of Michael Burry is ongoing.
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