Michael Burry, the famed investor known for his successful bet against the housing market during the 2008 financial crisis, has made headlines once again. Burry has officially terminated his registration with the SEC and announced the closure of his hedge fund, Scion Asset Management. In a surprising move, he named his protege, Phil Clifton, as the heir apparent to his investment business.
Last week, Burry disclosed that his firm had taken a bearish position against tech giants Nvidia (NVDA) and Palantir (PLTR) by purchasing thousands of puts against both companies. His warnings about the unsustainable growth in tech valuations have been ringing alarms across the financial industry.
When Palantir CEO Alex Karp criticized Burry’s position on CNBC, calling it “batshit crazy,” Burry fired back with a sharp retort. The exchange between the two felt like the closing chapter of Burry’s final hedge fund bet.
Following the disclosure of Burry’s bearish positions, tech stocks experienced a significant drop. The Nasdaq Index ($NASX) had its worst week since April, with Nvidia falling 7.1% and Palantir dropping 11.2%. Despite the apparent success of his position, Burry posted a cryptic message on his X account featuring Christian Bale’s portrayal of himself in The Big Short, hinting at his departure from the investment world.
In a letter dated October 27, 2025, Burry informed his investors of his decision to close his fund. He hinted at a new venture launching on November 25, leaving many wondering about the future of his investment career.
Phil Clifton, the chosen successor to Burry, has been described as a “tremendous young talent” and a “prodigious thinker” by Burry himself. Clifton, a double graduate from the Georgia Institute of Technology, holds degrees in Aerospace Engineering and has a background in finance. He has been associated with Scion Asset Management for the past five years and has now founded Pomerium Capital.
The financial community eagerly awaits the launch of Phil Clifton’s new venture on November 25. With Burry’s endorsement and praise, Clifton has big shoes to fill but appears to be off to a strong start. Investors and industry experts will be closely watching how this transition unfolds.
As of the publication date, the author, Justin Estes, does not hold any positions in the securities mentioned in this article. The information provided is for informational purposes only. This article was originally published on Barchart.com.
