Michael Burry (of The Big Short fame) de-registers his hedge fund.

[1srelluc]

MSN

www.msn.com

Michael Burry, the provocative fund manager whose bets against the housing market were chronicled in “The Big Short,” appears to be closing his hedge fund, a securities filing shows.

A filing with the Securities and Exchange Commission shows the registration status of Scion Asset Management, which as of March had $154 million in assets under management, was terminated on Monday. Registration is required for funds with over $100 million.

A screenshot of a letter saying he was returning capital to investors and that “my estimation of value in securities is not now, and has not been for some time, in sync with the markets.”

Burry previously closed his first hedge fund, named Scion Capital, in 2008, before opening Scion Asset Management in 2013.

I figure he will let the dust settle after the inviable AI crash then reopen.....Or just call it a day altogether.

I found this blog post to be very interesting.....Not panic interesting but something to ponder on before going full-in on AI.

An AI Addendum

Last month, I chose to strip away all the hubris around AI and ask one simple question, one that oddly no one had really bothered to ask; how much revenue is needed to justify the current level of capex spend and give AI investors a return on their capital?? I clearly hit a nerve in […]

pracap.com

Last month, I chose to strip away all the hubris around AI and ask one simple question, one that oddly no one had really bothered to ask; how much revenue is needed to justify the current level of capex spend and give AI investors a return on their capital??

I clearly hit a nerve in the industry, when judging by the number of individuals who reached out to chat.

Since then, I’ve spoken with people who own datacenters, lend to datacenters, and design datacenters. I’ve spoken with people who are working to improve the cooling technology, or the customer interface.

I’ve spoken with hedge fund, PE and VC investors who are fixated on the future of AI, and I’ve spoken with employees who are desperate for a liquidity event before it all collapses.

In total, I’ve spoken with over two-dozen rather senior people in the datacenter universe, and there was an interesting and overriding theme to our conversations; no one understands how the financial math is supposed to work. They are as baffled as I am, and they do this for a living.

This is one of those rather surreal situations where everyone senior in this ecosystem knows that the math doesn’t work, but they don’t know that everyone else also knows this. They thought that they were the foolish ones, who simply didn’t get it.