Situational Awareness Fund Assets Drop 67% in July, Continues Operations

AI hedge fund Situational Awareness reports a 67% asset decline in July due to selloffs. Founder Leopold Aschenbrenner confirms continued operations without leverage.

Woofun AI reports that AI hedge fund Situational Awareness experienced a 67% reduction in assets during July, according to founder Leopold Aschenbrenner. Aschenbrenner accepted full responsibility for the losses, attributing them to AI stock selloffs impacting holdings in Bloom Energy and SanDisk, which he likened to a "bank run".

The fund executed an emergency exit deal with Citadel to sell public stock holdings at a discount. Despite the monthly decline, the fund remains up 80% year-to-date. Aschenbrenner stated the fund will continue operating in the public stock market but will cease leveraging bets through bank borrowings. Early investors remain restricted by lock-up agreements until at least September.