AI funds: “We have disappointed this month”: Aschenbrenner's hedge fund loses 67 percent of its value in July
Leveraged AI investments led to massive fire sales at hedge fund Situational Awareness. And this precisely during the founder's wedding week.
Situation Awareness, a hedge fund managed by 24-year-old Leopold Aschenbrenner, experienced a dramatic collapse in value during July, shedding 67 percent of its worth, according to the "Wall Street Journal" (WSJ). The fund, which had grown to a size of up to 45 billion dollars within just two years, was forced to make emergency sales of its holdings, primarily in the artificial intelligence (AI) sector, after significant losses in the market.
Citadel, led by Ken Griffin, purchased a large portion of the portfolio worth nearly ten billion dollars. Aschenbrenner informed his investors in a letter that the fund had disappointed them that month. The decline occurred during the week of Aschenbrenner's planned wedding.
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