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Dec 2, 2025 4:00 PM

Michael Burry Reveals Why He Closed Scion — Guess What? He's Bearish

Michael Burry appeared on "The Big Short" author Michael Lewis' "Against the Rules" podcast, where he revealed more details on his bearish position in Palantir Technologies, Inc. (NASDAQ:PLTR) and why he closed his Scion Asset Management hedge fund.

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Burry, rather predictably, sees the stock market poised for a dramatic and indiscriminate downturn, similar to the tech bust of 2000. 

Why He Closed Scion

Burry said that one of the keys to the closure of Scion was the rise of passive investing, specifically index funds, which he warns have fundamentally altered the market’s risk profile. 

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He noted that over 50% of market capital is now “passive” money, with less than 10% managed by investors focused on long-term value.

"I think that we are in a bad situation in the stock market. ...