Jane Street takes $15bn hit in July tied to AI sell-off
Jane Street generates more than $40bn in trading revenue year to date, source says; executives tell employees firm closed significant risk in areas that lost money in July; Jane Street says it is pull...
Jane Street, the secretive Wall Street trading firm, reported a $15 billion loss in July due to its exposure to AI-focused hedge fund Situational Awareness and other tech stocks that suffered during the market sell-off. Despite generating over $40 billion in trading revenue year to date, the firm experienced significant losses in July, marking its first negative month since 2016.
Situational Awareness, managed by former OpenAI researcher Leopold Aschenbrenner, offloaded most of its stocks in a fire sale to billionaire Ken Griffin's Citadel, contributing to the firm's poor performance. Jane Street attributes the losses to both its investment in Situational Awareness and long positions in non-AI stocks in Asia.
The firm, with around 3,500 employees, provides market liquidity by buying and selling various financial products and currently has direct access to over 200 trading venues worldwide. Despite the losses, Jane Street has pulled back on risk-taking in some strategies and is selectively closing positions in the areas where it incurred losses.
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- Jane Street took $15 billion hit in July tied to Situational Awareness, AI selloff, sources say economictimes.indiatimes.com
