Investor Michael Burry, famously known as "The Big Short" investor, has taken steps to clear up misunderstandings regarding his recent options position against Palantir Technologies Inc. His clarification comes amidst widespread media reports that inaccurately portrayed the magnitude of his investment. In a related development, Burry also announced the impending closure of his hedge fund, Scion Asset Management, citing a persistent disconnect between market valuations and his own analytical perspectives. This move, he explained, marks a significant shift in his professional trajectory, with a new venture hinted for the near future.
Investor Michael Burry Sheds Light on Palantir Bet and Announces Fund's Closure
On November 14, 2025, in a post on X, prominent investor Michael Burry addressed public misinterpretations surrounding his latest options trade involving Palantir Technologies Inc. The esteemed investor specified that he acquired 50,000 put option contracts on Palantir, each representing 100 shares, with an expiration date in 2027 and a strike price of $50. The total expenditure for these contracts was $9.2 million, a figure considerably lower than the $912 million erroneously cited in various media reports. He directly tagged major financial news outlets like CNBC, the Wall Street Journal, and the Financial Times to rectify the inaccurate figures. This strategic position provides Burry with a short exposure equivalent to approximately 5 million Palantir shares, indicating his anticipation of a substantial stock price decline exceeding 70% by 2027 to achieve profitability. He further noted that this transaction was executed last month. Concurrently, Burry disclosed the decision to de-register Scion Asset Management, LLC., his hedge fund. In a communication to investors, he expressed that the fund would be liquidated, and capital returned by the end of the year. This decision stems from a prolonged period where market trends diverged from his investment evaluations. Beyond Palantir, Burry has also taken a short position on NVIDIA Corp. through 1 million put options, signaling his skepticism regarding the current state of the artificial intelligence market. As of Thursday's close, Palantir shares experienced a 6.53% decrease, settling at $172.14, with a subsequent 0.82% decline overnight. Despite these fluctuations, Palantir maintains high scores in Momentum and Growth within Benzinga's Edge Stock Rankings, demonstrating a positive price trend across short, medium, and long terms.
This sequence of events offers a compelling glimpse into the mind of a contrarian investor. Burry's meticulous correction of investment figures underscores the importance of accurate financial reporting and the potential for misinterpretation in complex market transactions. His decision to close Scion Asset Management, despite his past successes, highlights the challenges even seasoned investors face when market dynamics consistently diverge from fundamental analysis. This move could signal a broader shift in his investment philosophy or a strategic pivot towards new opportunities. The hint of a new venture adds an element of anticipation, suggesting that while one chapter closes, another, potentially innovative, one is about to begin. For observers, it's a reminder that even the most established players in the financial world are constantly adapting and re-evaluating their strategies in response to an ever-changing economic landscape.