Leopold Aschenbrenner's Situational Awareness bet big on SanDisk and Micron before it blew up
Leopold Aschenbrenner's hedge fund revealed that it bet on AI stocks such as TSMC and Nebius last quarter, and closed out most of its put options.
Leopold Aschenbrenner, the founder of Situational Awareness, heavily invested in SanDisk and Micron before the fund's collapse in July. The fund's portfolio was dominated by these two AI stocks, accounting for 56% of the $20 billion US stock portfolio. In the three months leading up to June, Aschenbrenner's stake in SanDisk and Micron each increased fivefold.
The fund also reduced its number of put options, which are used as insurance against falling stock prices, from 11 to just one. This aggressive concentration in two stocks and reduction in hedging strategies led to a 67% portfolio decline in July, prompting liquidation of positions and margin calls.
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