Jane Street took $15 billion hit in July tied to Situational Awareness, AI selloff, sources say
In July, Jane Street suffered a staggering $15 billion loss amid a challenging AI-driven stock market downturn. Despite this setback, the firm has accrued more than $40 billion in revenue this year, putting it ahead of competitors. Meanwhile, AI hedge fund Situational Awareness made the tough call to liquidate its stock holdings following margin calls.
Jane Street, a secretive Wall Street trading firm, suffered a $15 billion loss in July due to its exposure to AI-focused hedge fund Situational Awareness and other tech stocks that experienced a market selloff. The firm, which has generated over $40 billion in trading revenue year to date, is one of the largest market-making rivals to the largest banks.
Situational Awareness, run by former OpenAI researcher Leopold Aschenbrenner, offloaded most of its stock portfolio during a "fire sale" to billionaire Ken Griffin's Citadel after being impacted by the AI selloff. The losses were spread out throughout the month, making short-term hedges ineffective. The firm also took a hit from long positions in non-AI stocks in Asia that had outperformed earlier in the year.
Despite the losses, Jane Street remains selective about risk and closed several riskiest positions in recent weeks.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
