Odaily Planet Daily News: AI hedge fund Situational Awareness has declined approximately 67% since July due to a significant correction in AI stocks. In a letter to investors, fund founder Leopold Aschenbrenner stated: “This month, we let everyone down.” However, despite the severe drawdown in July, Situational Awareness has still risen approximately 80% year-to-date. As of the end of May, the fund’s year-to-date return had reached approximately 270%.
The previous report stated that, due to massive losses, Situational sold a large portion of its public equity holdings to Citadel, led by Ken Griffin, to raise cash to meet margin requirements from lenders. Additionally, the fund had previously planned to sell approximately $3.5 billion in Anthropic equity to an investor consortium led by Greenoaks and Sequoia Capital, but later withdrew from the deal. (The Wall Street Journal)