Controversial short seller Michael Burry has shut down his hedge fund in a move that draws parallels to his exit about 17 years ago following the collapse of the housing market.
Filings with the U.S. Securities and Exchange Commission (SEC) show that Burry’s Scion Asset Management has terminated its registration status as of November 10th.
In a letter to investors circulating on X, Burry says he will liquidate the funds and return capital “with a heavy heart” by the end of the year.
“My estimation of value in securities is not now, and has not been for some time, in sync with the markets.”
The move echoes the exit of Burry’s Scion Capital in 2008, right after his massive bet against the housing market netted him a personal profit of $100 million. Back then, Burry had to wait two years before being proven right.
In a post on X, Burry confirms the termination of Scion, while correcting reports that he spent $912 million for his put positions on Palantir (PLTR).
“So, I bought 50,000 of these things for $1.84. Each of those things is 100 doodads. So I spent $9,200,000.”
Burry says the PLTR puts give him the option to sell Palantir at $50 in 2027, giving him two years for his wager to play out. The “Big Short” investor’s statement suggests the bearish bet against PLTR remains in play even after closing up shop.
Burry only makes profits on his PLTR position if Palantir drops below $50 in two years. Should the stock plunge to $40 in 2027, he would reap $40.8 million. A PLTR collapse to $20 would reward him with $140.8 million.
As of Thursday’s close, PLTR is trading at $172.
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