The chip wipeout reached a climax this week. One of the AI boom's most prescient young investors was caught at the center of it.
Leopold Aschenbrenner's hedge fund lost 67% in July as leveraged AI bets unraveled, forcing the fund to sell most of its public holdings to Citadel and remove all leverage.
"We let you down this month," Aschenbrenner wrote to investors.
Yet the fund, Situational Awareness, remains up about 80% this year after a spectacular run before the sell-off. The thesis did not break first. The financing did.
The timing carries an eerie Wall Street echo.
#fund #citadel #awareness
Leopold Aschenbrenner's hedge fund lost 67% in July as leveraged AI bets unraveled, forcing the fund to sell most of its public holdings to Citadel and remove all leverage.
"We let you down this month," Aschenbrenner wrote to investors.
Yet the fund, Situational Awareness, remains up about 80% this year after a spectacular run before the sell-off. The thesis did not break first. The financing did.
The timing carries an eerie Wall Street echo.
#fund #citadel #awareness
5 hours ago
