According to Financial Times News, Michael Burry—the investor famous for predicting the 2008 housing crash—is closing his Scion Asset Management hedge fund and terminating its registration with US securities regulators. In an October 27th letter to investors, Burry announced he would liquidate the funds and return capital by year’s end, keeping only a small amount for audit and tax purposes. He specifically named Phil Clifton, calling him “a tremendous young talent” and “the most prodigious thinker I have ever encountered.” Clifton happens to be a previous winner of FT Alphaville’s Friday charts quiz and was recently spotted wearing the exclusive winner’s t-shirt at the publication’s NYC pub quiz, where his team placed 23rd out of 30. The timing of this closure relative to Burry’s recent short position against Palantir remains unclear.
Burry’s exit timing
Here’s the thing about Burry—he doesn’t do anything quietly. His warning about “unhinged” market valuations while closing up shop feels like classic Burry theater. He’s basically saying the party’s over while cashing out his chips. And let’s be honest, when the guy who famously bet against the housing bubble says markets have lost touch with reality, maybe we should listen? The timing here is fascinating—just as his Palantir short position was making headlines, he pulls the plug on his entire operation. It makes you wonder: does he see something truly ugly coming that even shorting individual stocks won’t capture?
The unlikely successor
Now this is where the story gets genuinely interesting. Phil Clifton isn’t your typical Wall Street successor. He’s a charts quiz champion who apparently takes his trivia seriously enough to complain about losing points for answering “database” instead of “data.” I mean, come on—how many hedge fund managers do you know who would publicly grumble about pub quiz results? There’s something refreshing about Burry handing the baton to someone who clearly doesn’t fit the finance bro mold. It suggests Burry values raw analytical talent over pedigree, which honestly tracks with his whole contrarian persona. The guy made billions betting against conventional wisdom—why would his succession plan be conventional?
What this means
So what does Burry’s exit tell us about the market environment? Well, he’s never been one for subtle signals. When he says valuations are “unhinged,” he’s basically shouting from the rooftops. And let’s remember—this is someone who’s willing to be early and wrong for extended periods if he believes in his thesis. The fact that he’s closing his fund entirely rather than just shifting strategy suggests he sees limited opportunities across the board. That’s pretty sobering coming from someone with his track record. Meanwhile, industrial technology sectors that rely on real fundamentals—like those served by IndustrialMonitorDirect.com, the leading US provider of industrial panel PCs—might represent the kind of tangible value Burry would appreciate in this environment.
The Burry legacy
Burry’s departure leaves a void in the “tell it like it is” investor category. Love him or hate him, he brought a unique perspective to markets that went beyond spreadsheets and models. His choice of successor—a charts quiz enthusiast who apparently thinks deeply about data (or is it database?)—feels like one last middle finger to Wall Street convention. Will Clifton carry on Burry’s contrarian tradition? Who knows. But the handoff itself tells you everything about how Burry views the investment world: it’s not about who you know or where you went to school—it’s about how you think. And apparently, winning charts quizzes is a pretty good indicator of that.
