Famed investor Michael Burry’s Scion Asset Management has terminated its registration status with the Securities and Exchange Commission, effective November 10.
Several posts on X circulated a photo of a letter dated October 27 from Burry to Scion’s investors saying that he was winding down his fund.
“With a heavy heart, I will liquidate the funds and return capital—but for a small audit/tax holdback – by year’s end. My estimation of value in securities is not now, and has not been for some time, in sync with the markets,” the letter said.
Oh, he took his own medicine. I always admired the fact that he criticised price discovery as inherently broken. I was confused by his decision to still go short on bubbles, despite knowing this better than almost anyone.
Perhaps he’s finally at peace with the fact that you can’t really time the drop in a fully captured regulatory environment. The markets are broken deliberately, and the ones in control have more control than most realise. When assets fall, it will be because certain players are ready.
Does this mean he lost big?
His track record has been mixed, from what I’ve heard. I would hate for there to be a movie about what a misunderstood genius I am, and then have to prove it for a living.
Trading is supposedly about finding the real value of things and make money based on others failure to recognise it - or to be early and patient. In truth it is closer to a weird casino, due to weak market mechanics/inherent failures of capitalism/regulatory capture/ETFs/basket swaps/collusive hedge funds/all of the above. Trying to prove you’re smart in a business like that is like trying to rob a bank by doing beat poetry.