Situational Awareness rebuilds AI options bets
Situational Awareness, the hedge fund founded by former OpenAI researcher Leopold Aschenbrenner, has returned to a group of high-conviction AI trades after suffering a sharp portfolio decline during July's technology sell-off, according to a report by GuruFocus.
Situational Awareness, a hedge fund managed by a former OpenAI researcher, has resumed high-stakes bets on artificial intelligence (AI) companies following a significant portfolio loss during July’s tech downturn. The fund has been purchasing call options on companies like AMD, Bloom Energy, CoreWeave, SK Hynix, and SanDisk, investing hundreds of millions of dollars in the process.
These recent positions indicate a return to the AI-focused strategy that yielded substantial gains earlier this year. However, the fund experienced a 67% decline after leverage and a sharp reversal in technology stocks led to a dramatic drawdown. Despite these challenges, the latest options activity suggests the fund is once again targeting key areas for AI infrastructure expansion, including semiconductor processors, cloud computing, memory, and electricity.
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