Wall Street Breakfast Big Short's Michael Burry shuts hedge fund
Nov 13, 2025
Michael Burry closes his hedge fund after betting against AI, raising eyebrows in the investment community. Disney faces challenges with declining TV and film segments, yet still plans to increase dividends. The tech sector experiences a risk-off moment as stocks like Tesla tumble. Meanwhile, Verizon announces significant layoffs to combat subscriber losses. A discussion on how AI investments might reduce funds for stock buybacks highlights a potential shift in corporate strategies.
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Burry Liquidates Scion After Bearish Bets
- Michael Burry announced he will liquidate Scion Asset Management and return capital by year-end.
- He disclosed bearish positions in NVIDIA and Palantir days before closing the fund.
Accounting Tricks Inflate AI Profits
- Burry argues hyperscalers understate depreciation to inflate AI-era profits.
- He estimates understated depreciation could total $176 billion from 2026–28, boosting reported profits over 20% at some firms.
Tech Weakness Drives Market Sell-Off
- Markets moved sharply lower as investors echoed skepticism about tech and AI valuations.
- The Nasdaq led declines, falling over 2% while the S&P and Dow dropped more than 1%.