{"id":12684,"date":"2025-11-13T19:52:03","date_gmt":"2025-11-13T19:52:03","guid":{"rendered":"https:\/\/fundinguno.com\/?p=12684"},"modified":"2025-11-13T19:52:07","modified_gmt":"2025-11-13T19:52:07","slug":"wall-street-lunch-big-short-burry-closes-scion-asset-management-citing-market-disconnect","status":"publish","type":"post","link":"https:\/\/fundinguno.com\/?p=12684","title":{"rendered":"Wall Street Lunch: Big Short Burry Closes Scion Asset Management, Citing Market Disconnect"},"content":{"rendered":"<div data-test-id=\"content-container\">\n<p data-eci=\"true\">\n<figure class=\"getty-figure\" data-type=\"getty-image\"><picture>  <\/picture><figcaption> <\/figcaption><\/figure>\n<\/p>\n<p>Listen below or on the go on Apple Podcasts and Spotify<\/p>\n<div class=\"pcast hidden-print\">\n<div class=\"pcast__section-1\">\n    <img decoding=\"async\" alt=\"\" class=\"pcast__top-img pcast__marketing\" src=\"https:\/\/fundinguno.com\/wp-content\/uploads\/2025\/09\/podcast_series_header.png\" loading=\"lazy\">\n  <\/div>\n<p><iframe loading=\"lazy\" src=\"https:\/\/widget.spreaker.com\/player?episode_id=68557189&amp;theme=light&amp;playlist=false&amp;playlist-continuous=false&amp;chapters-image=true&amp;episode_image_position=right&amp;hide-logo=true&amp;hide-likes=true&amp;hide-comments=true&amp;hide-sharing=true&amp;hide-download=true&amp;color=ff6900\" width=\"100%\" height=\"200px\" title=\"Big Short's Michael Burry shuts hedge fund\" frameborder=\"0\" sap-id=\"4\"><\/iframe><\/p>\n<\/div>\n<p>Burry wound up his fund just days after disclosing bets against AI trade. (0:15). Disney tumbles on TV, film weakness. (1:55) AI trade could kill buybacks. (3:39)<\/p>\n<p>This is an abridged transcript of the podcast:<\/p>\n<p>Our top story so far, from Big Short to Big Mystery.<\/p>\n<p>Michael Burry has wound up his hedge fund, Scion Asset Management, just days after making waves by betting against the AI trade.<\/p>\n<p>Scion terminated its registration with the SEC effective November 10. In a letter to investors dated October 27 and confirmed by the Financial Times, Burry wrote, \u201cWith a heavy heart, I will liquidate the funds and return capital\u2014minus a small audit and tax holdback\u2014by year\u2019s end. My estimation of value in securities is not now, and has not been for some time, in sync with the markets.\u201d<\/p>\n<p>He added that investors could reach out to associate PM Phil Clifton about his next move. But on X, Burry teased \u201cmuch better things November 25.\u201d<\/p>\n<p>Last week, Scion disclosed bearish positions in Nvidia (<span class=\"ticker-hover-wrapper\">NVDA<\/span>) and Palantir (<span class=\"ticker-hover-wrapper\">PLTR<\/span>). The man who famously predicted the 2008 housing crisis has recently been warning about inflated AI valuations and creative accounting at hyperscalers. He argues that cloud and AI infrastructure firms are boosting earnings by extending the \u201cuseful life\u201d of their assets\u2014what he calls one of the most common modern accounting tricks.<\/p>\n<p>Burry estimates the practice could understate depreciation by $176 billion between 2026 and 2028, overstating profits at Oracle (ORCL) and Meta (META) by more than 20%.<\/p>\n<p>You can check out a full timeline of Burry\u2019s Wall Street arc on Seeking Alpha \u2014 where, by the way, we\u2019re having a Black Friday sale with 20% off all products.<\/p>\n<p>In today\u2019s trading, investors are echoing Burry\u2019s pessimism about tech \u2013 for this session at least.<\/p>\n<p>The Nasdaq (COMP.IND) is the weakest among the major averages, down 2% in afternoon trading. The S&amp;P (SP500) and Dow (DJI) are off more than 1%.<\/p>\n<p>Some of the biggest decliners include Super Micro Computer (SMCI), Tesla (TSLA) and Palantir (PLTR).<\/p>\n<p>Among active stocks, Disney (DIS) is tumbling on weakness in its traditional TV and film businesses in fiscal Q4 \u2013 overshadowing growth in streaming and parks.<\/p>\n<p>Bank of America\u2019s Jessica Reif Ehrlich says Disney\u2019s results are likely to lean heavily on the back half of the year.<\/p>\n<p>The first quarter, she says, will be weighed down by about $150 million in pre-opening and dry-dock costs in the Experiences business, a $400 million hit from tough theatrical comparisons, $140 million in lower political ad revenue, and a $73 million drag from Star India.<\/p>\n<p>On the bright side, Disney announced a 50% boost to its dividend and plans to double share buybacks to $7 billion in fiscal 2026.<\/p>\n<p>Verizon (VZ) \u2014 under new CEO leadership promising cost cuts and a turnaround \u2014 plans to lay off roughly 15,000 workers and transition about 200 stores into franchises.<\/p>\n<p>The telecom has lost postpaid phone subscribers for three straight quarters as competition intensifies in both home internet and mobile service.<\/p>\n<p>And Firefly Aerospace (FLY) is soaring after a strong earnings report and a Deutsche Bank upgrade to Buy.<\/p>\n<p>Analyst Edison Yu says a fix for the Alpha rocket\u2019s first-stage engine issue gives investors better visibility into Flight #7 \u2014 expected late this year or early 2026.<\/p>\n<p>In other news of note, Target (TGT) is hoping a new staff policy will bring shoppers closer \u2014 literally.<\/p>\n<p>USA Today says the policy &#8211; called the 10-4 program &#8211; requires employees within 10 feet of shoppers to smile, make eye contact and wave. If shoppers come closer, within 4 feet, employees must greet them and initiate a warm helpful interaction.<\/p>\n<p>Chief Stores Officer Adrienne Costanzo says: &#8220;Heading into the holiday, we&#8217;re making adjustments and implementing new ways to increase connection during the most important time of the year.&#8221;<\/p>\n<p>And in the Wall Street Research Corner, the race for AI dominance could soon wipe out one of corporate America&#8217;s favorite avenues for shareholder return: the stock buyback.<\/p>\n<p>The market may be on the brink of a \u201cde facto Fed tightening,\u201d according to Nomura strategist Charlie McElligott. If growth and inflation reaccelerate \u2014 a scenario he says would catch most investors flat-footed \u2014 then loose financial conditions could create \u201csuch a profound wealth effect via the stock market\u201d that traders would have to price in a less dovish Fed path.<\/p>\n<p>\u201cIn that kind of backdrop,\u201d he says, the AI theme \u2014 which is the stock market \u2014 begins to lean on credit spreads to keep chasing capex, while free-cash-flow burn hits the cash that\u2019s funded buybacks for the past 15 years.<\/p>\n<p>In other words, hello data centers, bye bye buybacks.<\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/seekingalpha.com\/article\/4843359-wall-street-lunch-big-short-burry-closes-scion-asset-management-citing-market-disconnect?source=feed_all_articles\" target=\"_blank\" rel=\"noopener\" rel=\"nofollow\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Listen below or on the go on Apple Podcasts and Spotify Burry wound up his fund just days after disclosing bets against AI trade. (0:15). Disney tumbles on TV, film weakness. (1:55) AI trade could kill buybacks. (3:39) This is an abridged transcript of the podcast: Our top story so far, from Big Short to Big Mystery. Michael Burry has wound up his hedge fund, Scion Asset Management, just days after making waves by betting against the AI trade. Scion terminated its registration with the SEC effective November 10. In a letter to investors dated October 27 and confirmed by<\/p>\n","protected":false},"author":1,"featured_media":12685,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[42],"tags":[],"class_list":["post-12684","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Wall Street Lunch: Big Short Burry Closes Scion Asset Management, Citing Market Disconnect | FundingUno<\/title>\n<meta name=\"description\" content=\"Listen below or on the go on Apple Podcasts and Spotify Burry wound up his fund just days after disclosing bets against AI trade. (0:15). 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