Popularity is earned by short, but money is earned by long.

"To my investors, I would like to express my heavy heart. I will liquidate the fund and return the capital, excluding small-scale audits and tax holdouts by the end of the year. My views on the valuation of securities will not be consistent with the market now and for some time. Thank you from the bottom of my heart, and I would also like to apologize."
Michael Burry sent a letter to investors on October 27 (local time) announcing the liquidation of the fund. Some analysts say that the "master of the big short" Warren Buffett called "Casandra" may be due to losses incurred by the early entry into the short position.

The Wall Street Journal (WSJ) also reported on the 13th that Burry canceled his hedge fund registration with the Securities and Exchange Commission (SEC). According to an online SEC database, Burry's registration status of Scientific Asset Management was marked as "End" as of the 10th.
Burry's Scientific Asset Management shocked the market when it was revealed that it had a large amount of put options for Nvidia and Palantir in the SEC filing F13, which was released on the 3rd. Shortly after the news was announced, Palantir fell 8% and Nvidia fell nearly 4% in the U.S. market on the 4th, giving a boost to the AI bubble theory.
A doctor-turned-financeman, Bury gained fame as a hedge fund manager for his short selling on the housing market just before the 2008 collapse. Having fought the real estate bubble and blood-and-blooded, Bury has officially declared his fight against the "AI bubble" this time around. "Sometimes I see bubbles. Sometimes there's a way to deal with bubbles. Sometimes not participating is the only winning strategy," Bury said in an Oct. 30 X post, warning of an AI bubble.
Soon after, major U.S. cloud and AI infrastructure companies continued their offensive on the 10th of this month, claiming that they were artificially inflating profits by reducing depreciation costs. He criticized his X, saying, "AI hyperscaler companies are reducing depreciation costs by excessively lengthening the lifespan of assets," adding, "This is one of the most common profit-inflating methods in modern accounting."
He pointed out, "We purchase a large number of equipment that is replaced every two to three years, such as Nvidia's chips and servers, but rather account for it by extending the life of the asset." This accounting method makes a company's net profit look inflated in the short term, but it does not help with actual cash flow.

Burie estimated that such a reduction in depreciation would reach about $176 billion from 2026 to 2028. In particular, he argued that the profits of Oracle and Meta could be overestimated by 27% and 21%, respectively, as of 2028.
After the release of the F13 report, which revealed its position through September, Burry eventually announced in an X post on the 13th that he invested $9.2 million (KRW 13.4 billion) in Palantir's put option transaction and ended the sale. Palantir's short position entry price is equivalent to $184 and the option investment is equivalent to about $900 million in kind. In the third quarter, Palantir continued to rise, surpassing $200 and Burry's fund is estimated to have suffered losses.
While acknowledging some losses, he wrote, "This is what happened last month. Much better things are waiting for November 25th." Some expect Burry, who dissolved the fund, to transition to a family office that only manages personal assets. It means that he is likely to continue his fight long and boring, still focusing on the AI bubble theory.

"Shorts may be provocative, but it's the longs that secure the real gains. It reminds me again that hedging shouldn't be the main strategy."