Situational Awareness Liquidates Entire Stock Portfolio Amid 35% AI Sector Decline

Leopold Aschenbrenner’s $24B fund sold all public equities and reduced Anthropic stake after severe losses in long AI infrastructure positions and short software volatility.

Woofun AI reports that Situational Awareness, the AI-focused hedge fund established by former OpenAI researcher Leopold Aschenbrenner, executed a complete liquidation of its publicly traded stock portfolio in a single transaction prior to Thursday's market open. The fund, which manages between $20 billion and $24 billion and recorded a 439% net return through June, also divested a substantial stake in Anthropic.

Insiders attribute the move to significant recent losses, noting that long positions in AI infrastructure and semiconductor stocks, including SK Hynix, Nvidia, Micron, and CoreWeave, declined over 35% this month, while short positions in software stocks like Adobe faced adverse volatility. A March 31 filing indicated that approximately 62% of its $13.68 billion holdings consisted of bearish options targeting semiconductor and tech declines.

Major brokers, including Bank of America, Goldman Sachs, and JPMorgan, are assisting with margin calls and position reduction, while Aschenbrenner seeks additional capital from existing investors and lenders.